Customer View of Banking

View of banking

Customers do not view banking as a “service.”

A key finding undergirding all our research is that, to a surprising extent, banking is not seen as a service — at least not to the same extent as consumers’ other business relationships like cable and internet providers, cell phone plans and utilities. While 77% of customers surveyed consider cable and internet a service, just 53% perceive banking that way.

Which, if any, do you consider a service?

Cable/Internet

Utilities

Gas, water, electric, etc.

Mobile phone with data plan

Streaming subscriptions

Netflix, Hulu, Disney Plus, etc.

Transportation

Bus, Train, Air Travel, etc.

A bank account

None of the above

Cable/Internet

Utilities

Gas, water, electric, etc.

Mobile phone with data plan

Streaming subscriptions

Netflix, Hulu, Disney Plus, etc.

Transportation

Bus, Train, Air Travel, etc.

A bank account

None of the above

77%

75%

72%

68%

57%

53%

Source: McGuffin/YouGov Banks, Customers and Fees survey, 2022

"I am letting the bank use my money. They’re not giving me much return as far as interest goes so I don’t see where they are providing a service."

Surveyed Bank Consumer

On a scale of 1 to 5... how well do you feel your bank communicates its fees?

1 = My bank is very transparent about fees

5 = My bank hides fees

40%

20%

26%

Source: McGuffin/YouGov Banks, Customers and Fees survey, 2022

While 40% of those surveyed said they thought their bank WAS transparent about the fees they charge, another 40% said they felt they WERE NOT. This leaves a lot of room for banks to improve in the area of open, honest communication about how and why they charge fees.

Customers’ trust in their bank remains tenuous.

According to EY’s 2021 NextWave Financial Services Survey, consumers aged 65 and over are the only age demographic left that trusts traditional banks more than fintechs. That’s a reflection of the move away from high-touch, in-person transactions and service toward digital relationships, which, while convenient, can make a customer’s connection to their bank (especially an incumbent one) seem remote.

That remoteness can leave customers feeling like their bank is less than transparent, especially regarding fees.

Plus, combined with years of promoting savings and discounts over service and value, incumbent institutions are seeing consumer perception dim regarding the real value they provide their customers and members — value that is funded by fees that customers increasingly find opaque or unnecessary.

"I feel most of the time they [banks] are not transparent when you open the account or if you incur certain fees each month, they don’t give you options to rectify the situation.There are programs they could suggest or come up with for users who struggle with this."

Surveyed Bank Consumer

View of banking

Nearly 1 in 3 customers consider changing banks because of fees.

Nearly 1 in 3 (28%) respondents reported considering changing banks due to fees. While 58% say fees haven’t encouraged them to make a move, it’s that 28% that represents a concerning response for banks fighting to retain every relationship in an increasingly competitive environment.

Recognizing fees are an essential source of revenue for all service providers, how can banks balance the need for reasonable fee income with customer perceptions that many of these charges are either unfair or even unscrupulous?
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A listening program among customers could help dissatisfied customers feel heard and help your bank gather learnings that inform your fee policies and fee communications.

Have you considered changing banks at all due to fees?

Source: McGuffin/YouGov Banks, Customers and Fees survey, 2022

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Customer perception of fees