A new study by PYMNTS reveals that, when choosing a bank, the majority of consumers are looking for a trustworthy FI when narrowing down their choices:
In the report “Credit Union Membership and Credit Profiles,” PYMNTS leverages insights gathered from a survey of over 4,000 U.S. consumers and 100 credit union (CU) executives to examine consumers’ interest in alternate and innovative payment methods from their financial institutions (FIs).
Findings captured in the joint PYMNTS-PSCU study reveal that while convenience holds the top spot for 36% of moderately satisfied respondents with their primary checking or savings account, trust closely follows at 27%. Among CU members, however, trust takes a narrow lead, with 31% considering it the most important factor, compared to 30% for convenience.
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Creating Trust; Providing Convenience
While it's true that subprime consumers, characterized by lower credit scores, are more interested in convenience than trust (43% ranked convenience as their most important factor), prime and super-prime consumers -- those who possess higher credit scores -- generally place greater importance on trust.
Protection of personal data and protection of financial assets also rank high among this group, with 66% and 65% of super-prime consumers, respectively, deeming each an important factor to consider when selecting a bank or CU.
PYMNTS concludes by noting that "with nearly 70% of CU members citing trust as a decisive factor in their banking decisions, FIs need to prioritize building and maintaining trust with their customers to ensure long-term success."
Banks Trusting Fintech Vendors
It is important to note that trust is not just between the bank and its customers. It also encompasses trust between the bank and their fintech vendors, as these technologies will often affect the customer experience.
It's essential for banks to do their due diligence on each vendor they partner with, going further than just what is presented during meetings. This means taking a deeper look at their technologies and performance through a proof of concept (POC), speaking to references provided and asking the right questions, and even going to public information -- from looking at reviews on different websites like G2, to reading public news and press releases.
A quick Google search can reveal details/factors that are important to consider, even with long-standing industry vendors. Confidence in your vendors is key to building trust, and this is something that OrboGraph does not take lightly -- over the past 25+ years, we have built our business through innovation and trust with our partners and banking clients.