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A quarter of respondents said they鈥檝e abandoned the account-opening process because the identity check was too difficult or taking too long. 20% said they鈥檝e reduced or stopped using an existing account because completing identity checks was too difficult or time-consuming.

The promise of all of this tech鈥攆rom AI to open banking and embedded finance鈥攊s speed: faster payments, faster credit underwriting, faster account opening, faster identity verification. And for nonfinancial institutions, it turns transactions into relationships, per Marqeta鈥檚 Kedia. Checking out at any store can now be a touchpoint for Apple if you use the Apple Card or tap to pay.

But I think that this idea of traditional versus digital media and how to reach these young consumers, at the high level, because we're talking about US consumer banking habits, I think that the headline is that Gen Z consumers are interested in opening up bank accounts right now. There's a lot of them and they're going to be opening up a lot of bank accounts.

Gen Z eclipsed all cohorts but baby boomers in opening a checking account in person over the past year, per our April 2022 US Account Opening survey. Building loyalty by cracking the personalization-privacy-ethics question. Gen Z consumers stick with brands that offer personalized experiences while placing data privacy front and center. They also demand ethical brand values and action.

Don鈥檛 forget: Gen Zers are about to open up a lot of new bank accounts. To brush up on their evaluation criteria, read this next.

The survey mainly aims to gain insights into the consumers' banking journey in opening new bank accounts and purchasing bank products/services. It explores the channels that raise awareness of banking brands and offerings, the sources consumers rely on for research, the factors influencing conversions, and the key elements that foster trust in a banking brand.

Services that minimize in-person requirements when opening accounts can help banks attract more customers. Race to the super app: Offering all of the functions included within a super app is challenging鈥攏o FI has accomplished this feat yet, though some are actively working toward it.

And you need to have seamless digital account opening experiences, because that's how Gen Z are acquiring your account. Rob Rubin:. And David, we have you, I need to ask, because I've started to see an uptick of offers from credit card companies coming to me. Are credit card issuers also trying to get into the acquisition game? David Morris:. I would say that that's been fairly consistent.

The trend: Multi-banking happens when consumers maintain their accounts at one bank while also opening a new account at another bank, chasing better rates or a more appealing digital experience. This trend is likely to accelerate when regulations around open banking take effect in the US. Javelin Strategy & Research found that the average US consumer has 5.3 bank accounts.

They need them for their gaming accounts, for bank account opening, all that sort of stuff. They don't read a single email. They have hundreds, if not thousands of unread emails in their inbox. I have to prod them to check, have you had this email from school or college or whatever, and they don't open them.

Looking ahead: Lululemon is still in the early phases of its international expansion; North America still accounts for the majority of its sales, although the bulk of the company鈥檚 store openings this year will be in China as it prioritizes that market.

Customers are opening up secondary accounts with wealth management companies and/or internet-only financial institutions (FIs) to take advantage of their rates. Around 50% of national bank customers have such secondary accounts, up from 44% in 2022.

They鈥檙e saving in accounts at bigger banks and avoiding other high-yield options. It鈥檚 not clear if that鈥檚 brand loyalty or inertia.

Discrimination has deterred underserved groups like Latinos from opening bank accounts. Black and Hispanic consumers pay higher bank fees than white consumers. Many Hispanics face language barriers, and surprisingly few FIs have adapted their products and services for Spanish speakers. More than 20% of unbanked households can鈥檛 meet the minimum balance requirements many banks enforce. Why fintech?

Without the privacy concerns of switching FIs, or the red tape of opening and closing accounts, FIs will need to earn loyalty every day. Open banking does not necessarily mean FIs need to race to the bottom for pricing and rates. But they will need to offer innovative and improved financial products and services to attract and retain customers.

While just 29.2% of overall consumers would consider a bank鈥檚 reputation when opening a new account, this rises to 40.0% among Gen Zers. They want their banks to give back to the community. A bank鈥檚 involvement in a consumer鈥檚 community is a factor that only 4.2% of overall consumers would consider, but it doubles to almost 8% among Gen Zers.