Welcome!

News Feed Item

Study: Community Financial Institutions Set to Capture Megabank Market Share

Increased Marketing Efforts, Digital Offerings Key to Success

AUSTIN, TX -- (Marketwired) -- 03/03/14 -- Community financial institutions (CFIs) may be well-positioned to gain additional market share from the megabanks this year. According to a new study, roughly half of megabank customers* (46 percent) report that they don't feel very loyal to their primary bank, and about 1 in 2 Americans (49 percent) say that banking locally is important.

The Consumer Banking Insights Study -- conducted online by Harris Poll in December 2013 among more than 1,000 U.S. adults (ages 18 and up) on behalf of more than 200 community financial institutions offering BancVue's Kasasa brand of checking accounts -- found that many megabank customers (43 percent) are not satisfied with their primary bank. More than half (58 percent) of megabank customers don't believe their primary bank has their best interests at heart, and 42 percent feel their bank takes advantage of them with all the fees.

In contrast, an overwhelming majority of CFI customers* (93 percent) say they trust their bank and feel very loyal (84 percent) toward their institution.

"This study found that many Americans are looking for roughly the same things from their financial institutions -- a trustworthy, dependable relationship and few or no fees," said Gabe Krajicek, BancVue's CEO. "Community financial institutions are able to meet most of those needs, and it seems consumers are finding that megabanks are not."

Yet, megabank customers' dissatisfaction alone is not enough to get them to switch institutions. While nearly 1 in 4 (23 percent) megabank customers say they're at least somewhat likely to switch their checking account to a local community bank or credit union this year, 63 percent say they have never considered opening a checking account at a local community financial institution.

Nearly one-quarter (24 percent) of megabank customers say they don't use a community financial institution because they don't believe a CFI can offer the same benefits. Additionally, 83 percent of megabank customers say a recognizable brand name -- not a traditional strength for CFIs -- is at least somewhat important to them when choosing a bank.

"In order to better compete with megabanks, CFIs will need to boost their marketing efforts and product lines," Krajicek said.

"Branding influences so many of our decisions, including our banking choices," Krajicek continued. "It's important for community financial institutions to take a hard look at their branding and marketing strategies. If their efforts are falling short, there are solutions out there that they can -- and should -- take advantage of."

About the Consumer Banking Insights Study
More than 200 community financial institutions offering BancVue's Kasasa brand of checking accounts teamed up to conduct the first Consumer Banking Insights Study. The study was executed online by Harris Poll on behalf of Kasasa from Dec. 26-31, 2013. The study polled 1,020 U.S. adults ages 18 and up to gauge their banking and checking preferences, feelings and behaviors. Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents' propensity to be online.

*Throughout this release "megabank customers" are checking account holders who consider one of the big national banks to be their primary banking institution and "CFI customers" are those who consider a local community bank or a credit union to be their primary banking institution.

About BancVue
BancVue is a provider of innovative products, world-class marketing and data-driven consulting solutions to community financial institutions across the United States. Featuring offerings like Kasasa, a national brand of superior products and marketing scale, BancVue products are designed to deliver controlled new account growth, higher profitability and increased customer retention. Today, serving nearly 700 community banks and credit unions across the country, BancVue is empowering its clients to compete in and win the war against megabanks. For more information on BancVue, visit www.bancvue.com.

Add to Digg Bookmark with del.icio.us Add to Newsvine

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Redis is not only the fastest database, but it is the most popular among the new wave of databases running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 19th Cloud Expo, Dave Nielsen, Developer Advocate, Redis Labs, will share the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...