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  • 22% of individuals who will not bank locally cite lack of
    up-to-date technology
  • 21% of individuals who will not bank locally cite inferior product
    offerings
  • 51% of Americans believe local financial institutions lack the same
    offerings as megabanks or online-only banks

AUSTIN, Texas–(BUSINESS WIRE)–Kasasa®
recently commissioned a consumer study revealing that among individuals
who would not consider opening a checking account with a local financial
institution, the top reason why not, stated by 56 percent, is limited
branch and ATM locations. The December 2018 study was conducted online
by The Harris Poll and garnered responses from 2,018 U.S. adults age 18
and older.

In addition to a lack of branch or ATM locations, Kasasa’s study
revealed that a lack of up-to-date technology is another deterrent for
opening an account at a local financial institution, with 22 percent of
those who would not consider going local for checking accounts citing
this as a factor. Modern technology appears to be most important to
Millennials (ages 24-38) with 28 percent of those who wouldn’t open a
checking account with a local institution citing lack of modern
technology compared to 18 percent of Gen X (ages 39-53) and 14 percent
of Boomers (ages 54-74).

Also, inferior product offerings are the third most common reason for
not selecting a local financial institution for checking account needs
at 21 percent. In fact, 51 percent of Americans believe local financial
institutions do not have the resources to offer the level of innovative,
user-friendly products that national megabanks or online-only banks do.

While this study reveals the primary hesitations consumers have with
choosing a local community bank or credit union, most seem to prefer
them over megabanks (55 percent would consider a local financial
institution to open a new checking account compared to 29 percent who
would consider a national megabank). This underscores the importance of
delivering and effectively communicating to prospective customers and
members accessibility of branches and ATMs, along with innovative,
technology-driven products.

Kasasa aims to help community banks and credit unions compete with and
take back market share from megabanks by meeting consumer needs through
innovative products that provide true value. Delivered through a
nationally recognized brand, Kasasa’s free, rewards-based checking
and savings accounts
require no minimum balance and enable community
institutions to increase non-interest income and reduce overall
expenses. Additionally, it offers rewards such as ATM fee refunds,
supporting the number one reason consumers cite for not banking locally.

“The idea that community financial institutions don’t offer the same
products as megabanks is just not true,” said Gabe Krajicek, CEO of
Kasasa. “Kasasa was created to help community banks and credit unions
compete aggressively with megabanks by offering products that are
innovative, convenient and free to consumers. Local financial
institutions must use their combined voice to make it known that they
are offering similar, if not better, products than megabanks. This is
how we will take back banking.”

About Kasasa

Based in Austin, Texas with 450 employees, Kasasa® is a financial
technology and marketing provider committed to driving results for over
900 community financial institutions by attracting, engaging, and
retaining consumers. Kasasa does this through branded retail products,
world class marketing, and expert consulting. For more information,
please visit www.kasasa.com,
or visit them on TwitterFacebook,
or LinkedIn.

Survey Method:

This survey was conducted online within the United States by The Harris
Poll on behalf of Kasasa from December 18 – 20, 2018
among 2,018 U.S. adults ages 18 and older. This online survey is not
based on a probability sample and therefore no estimate of theoretical
sampling error can be calculated. For complete survey methodology,
including weighting variables and subgroup sample sizes, please
contact Mary York at [email protected].

Contacts

Megan McKinstry
678-781-7237
[email protected]