FICO survey shows US bankers are changing their saving habits

SAN JOSE, California–(BUSINESS WIRE)–The leading applied analytics company, FICO (NYSE: FICO), today released new research on consumer deposits and banking habits. FICO’s new study found that just 42% of Americans contribute to their savings through automatic transfer or direct deposit, up from 47% in 2021. With the current economic uncertainty, consumers are demanding more from their banks to make them more difficult to navigate support circumstances. Almost half of consumers are interested in small dollar loans for spending when their balance is running low, especially when money is tight.

scenario

respondents

Interested

A bank is now offering the ability to get small dollar loans to help cover expenses when you are short on money or don’t have enough money.

48%

A bank now offers you the ability to choose from a range of available dollar amount limits up to which you can overdraw your account and the number of days to return to a positive balance via a monthly subscription fee.

37%

A bank is now offering you the opportunity to receive more personalized offers and advice through their mobile app and website when you share your savings goal.

67%

60% of consumers also expect a promotional offer when opening a new account and cash offers are a more popular choice than special rates when choosing an offer, although both are interesting. Consumers look beyond their primary bank for promotional offers at other banks, as 46% of consumers have some or all of their savings at a bank other than their primary bank, including 28% who choose to bank online. 30% of consumers opened a new account at a bank outside of their main bank in the past year, a trend that continues to grow.

“We see fintechs and digital banks enticing customers to open additional accounts with a variety of promotions and product features. While traditional banks may be maintaining a primary account for consumers, they are losing a significant portion of their deposits and awareness,” he said Glenn Grossman, Principal Counsel at FICO. “Now is the time for banks to consider what actions they can take to continue growing, including improved incentives for financial support. Ultimately, it’s about finding new ways to meet their customers’ needs and better support them directly on their financial journey.”

One of the key areas that can contribute to customers’ financial well-being is the treatment of overdraft fees, as 32% of consumers have charged at least one overdraft fee in the past year. The survey found that 50% of these consumers would like banks to offer small dollar loans as a solution. Additionally, 37% of consumers would be interested in a subscription fee that allows them to choose a dollar amount to overdraw and a set number of days to pay back.

Another key area for improving customer retention and financial resilience is the support banks offer to help customers meet their personal savings goals. While only 37% of consumers are currently saving with a specific goal in mind, 49% of those savers are interested in being able to track a goal and its progress directly through their bank. Additionally, 51% would also be interested in a reward when they achieve their goal, and 32% prefer messages of encouragement and advice to help them achieve that goal.

“Banks have a great opportunity to maintain their status as the primary financial services provider by better collaborating with their customers to help them achieve their financial goals. Banks also need to offer them additional solutions when they fall behind, which can help slow migration to online banks and fintechs,” he added disgusting man

More details and insights into the survey results:

About FICO

FICO (NYSE: FICO) supports decisions that help people and businesses around the world thrive. Founded in 1956, the company is a pioneer in using predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for companies in financial services, telecommunications, healthcare, retail, transportation and supply chain and many other industries. Businesses in more than 120 countries use FICO solutions to do everything from protecting 2.6 billion payment cards from fraud to helping people get credit and making sure millions of airplanes and rental cars are in the right place at the right time are.

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