AUSTIN, Texas,–A new survey has found Gen X (ages 39-53) are more likely than Gen Z (ages 18-23) to bank with a local credit union or community bank.
According to the analysis, conducted by Kasasa as part of its Consumer Banking Insights study, 48% of Gen X currently bank with a local institution, compared to only 35% of Gen Z. The 2018 study was conducted online by The Harris Poll on behalf of Kasasa, and garnered responses from 2,018 U.S. adults age 18 and older.
Across all generations, 55% would most likely consider opening a checking account at a local community bank or credit union, Kasasa reported. Those who would not consider using local financial institutions say it is because they perceive them to lack modern technology (22%) and have inferior product offerings (21%), as well as lack access to branch locations (40%) and ATMs (31%).
Perception of Lack of Resources
“Perhaps this is because more than half of consumers (51%) 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,” Kasasa said in releasing the study.
The study further found that while just 29% of Americans would consider opening a new checking account with a megabank, nearly half (45%) of new accounts were opened at Chase, Bank of America and Wells Fargo last year, the company said, citing reporting by the Wall Street Journal.
“Consumers want to bank local,” said Gabe Krajicek, CEO of Kasasa. “It’s like shopping local – you are bettering your community by choosing to bank at a community financial institution. In turn, you receive quality, personalized service. Consumers are fed up with big banks and we’re helping community banks and credit unions tap into that by connecting with their local markets through branded retail products that are actually good for the consumer. Together, we’re taking back banking.”