Why Do Customers Choose Fintechs? Corporate Insight Releases Survey Report on Banking Preferences Across Generations
NEW YORK, May 29, 2025 /PRNewswire/ -- Corporate Insight (CI), the leading provider of competitive intelligence and customer experience research to the financial services industry, today announced the release of its latest Fintech Monitor report examining how and why customers choose fintechs or incumbents for their banking needs. The report offers new insights on preferences across generations, income levels, and banking relationships.
"This research reveals a clear generational divide in banking preferences, with older consumers prioritizing traditional elements like physical branches and security, while younger generations place greater emphasis on social factors and recommendations," says Will Jack, senior analyst at CI. "This has profound implications for both incumbent banks and fintechs as they compete for customers in today's rapidly evolving financial landscape."
The report examines a Q1 2025 survey of 972 bank account holders, including those with fintech accounts only, incumbent bank accounts only, and those with both types of accounts, offering valuable insights for financial institutions looking to enhance customer retention and acquisition strategies.
Key findings from the research include:
- Generational differences drive banking decisions: While older respondents prioritize no-fee accounts, physical branch access, and customer service quality, younger generations take a more holistic approach. Gen Z respondents are significantly influenced by recommendations from friends and family, as well as a bank's values, showing a stronger emphasis on social factors.
- Younger generations are less satisfied with their banks: While 81% of Boomer+ and Gen X respondents expressed high satisfaction with their bank's digital interface design, only 40% of Gen Z respondents felt the same. This pattern of lower satisfaction scores from Gen Z repeats for other aspects, including customer service quality and spending tools.
- Customer loyalty remains strong at incumbents: 80% of incumbent-only respondents have not considered changing banks, with Boomer+ respondents showing the highest loyalty (91%). When asked why they stay, 70% of incumbent-only respondents gave the most popular reason for staying: "I like my bank."
"This report shows that financial institutions need tailored strategies for different demographic segments," adds Jack. "While traditional banks maintain strong customer loyalty, especially among older generations, they must enhance their digital capabilities to compete with fintechs that excel in these areas. Conversely, fintechs should consider how they might address the branch access and customer service features that continue to resonate with many consumers."
The full report examines account opening considerations, satisfaction levels, reasons for changing banks, and platform usage patterns across different demographic segments.
About Corporate Insight
Corporate Insight (CI) delivers competitive intelligence, user experience research and consulting services to the nation's leading financial services, insurance and healthcare organizations. As the recognized industry leader in customer experience research for over 30 years, our best-in-class research platform and unique approach of analyzing the actual customer experience helps organizations advance their competitive position in the marketplace.
About Fintech Monitor
CI's Fintech Monitor is a subscription-based competitive intelligence research service focused on the fintech digital experience. The service gives subscribers survey-backed, first-hand insights into the authenticated platform experience from over 24 innovative fintechs and startups, including Cash App, Chime, PayPal, Revolut, SoFi, and Venmo. Fintech Monitor provides competitive analysis reports, firm profiles, monthly updates and competitor capability tracking to show subscribers new digital innovations and key trends as they emerge and help them gain a competitive edge.
For inquiries or to interview an analyst, contact:
Patrick Flood
646-876-7535
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SOURCE Corporate Insight