FICO Survey: U.S. Banks Under-Leveraging Customer Loyalty

Customers take advantage of competitive environment to shop around for credit and investment products; Millennials represent best growth opportunity

SAN JOSE, Calif.—June 25, 2014—A comprehensive survey of U.S. bank customers conducted for FICO (NYSE:FICO), a leading predictive analytics and decision management software company, found that banks are under-leveraging their loyal customer bases, missing out on opportunities to increase top-line growth by cross-selling additional services. Consumers today use 6,05 banking services on average, but use only 3,37 of these services from their primary bank (where they keep their checking account). Only 30 percent of consumers surveyed have relationships with their primary bank that extend beyond checking, debit and savings.

Some 78 percent of consumers surveyed say they are satisfied with their primary bank, and half have done business with their primary bank for more than a decade. Still, consumers are going outside their primary bank for nearly half of their banking services. While just 5 percent of consumers use a secondary bank for checking and savings, 42 percent use a secondary bank for a credit card, 24 percent for a mortgage, 24 percent for an auto loan, and 27 percent for an IRA.

"The shifting interest rate landscape leaves U.S. banks scrambling for new sources of revenue and profit," said David Vonk, who leads the North American banking practice at FICO. "To remain competitive in a largely saturated market, banks should invest in more refined strategies to acquire younger customers, and deepen relationships with their happy existing customer base."

Overall, Millennials (ages 25 to 34) use the fewest banking services (5,78), although 60 percent of those services are with their primary bank. Two out of three Millennials use a large national bank for their primary banking services. Members of Generation X (ages 35 to 49) have the most banking services (6,27), with 55 percent of those services coming from their primary bank.

The survey found many opportunities for banks to grow top-line revenue either through new customer acquisition with a focus on Millennials, or by extending the number of services used by their existing customers. In the next year, 13 percent of respondents plan to open a new account with their primary bank, and 12 percent with a secondary bank. Millennials are also 95 percent more likely to open a new account with their primary bank than the average consumer, are twice as likely to open a new account with a secondary bank in the next 12 months, and are evaluating the largest variety of products and services.

The online survey of 991 U.S. banking customers was conducted in March 2014.

Über FICO
FICO (NYSE: FICO) ist ein führender Anbieter von Predictive Analytics und Softwarelösungen für Entscheidungsmanagement, das Unternehmen in über 90 Ländern dabei unterstützt, bessere Entscheidungen zu treffen, um Wachstum, Profitabilität und Kundenzufriedenheit zu steigern. Der zukunftsweisende Einsatz von Big Data und mathematischen Algorithmen zur Erstellung von Prognosen zum Kundenverhalten hat ganze Branchen grundlegend gewandelt. Die Analytics-Softwarelösungen und -Tools von FICO werden in den verschiedensten Branchen verwendet, um Risiken und Betrugsfälle zu verringern, profitablere Kundenbeziehungen aufzubauen, Abläufe zu optimieren und strenge regulatorische Vorgaben zu erfüllen. Many of our products reach industry-wide adoption. These include the FICO^® Score, the standard measure of consumer credit risk in the United States. FICO-Lösungen integrieren Open-Source-Standards und Cloud Computing, um so maximale Flexibilität und schnelle Bereitstellung zu ermöglichen und Kosten zu reduzieren. Das Unternehmen hilft Millionen von Menschen dabei, ihren persönlichen Kreditstatus zu verwalten. FICO: Make every decision count™. Learn more at www.fico.com.

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