The growing importance of both Millennial consumers and
advertising campaigns to banks' health are among the highlights of
the latest TNS Retail Banking Monitor, our market insights program
for retail banks.
Millennials rising. Millennials now account for
the majority of newly-established primary bank relationships.
Whereas 15 years ago, Millennials accounted for just 20% bank
relationships, as of 2015, they account for 54%.
Compared to older Americans, Millennials are more likely to
choose one of the three largest banks - Bank of America, Chase, and
Wells Fargo - and less likely to choose a credit union or community
bank. In addition to the big three, Citibank, M&T, BBVA Compass
and Ally Bank have been particularly effective at attracting new
primary bank relationships among Millennials.
More crowded landscape for bank advertising.
Awareness of bank advertising has been rising gradually in recent
years. Five years ago, five banks had 4% or higher unaided ad
awareness nationally. Now, seven banks exceed 4% breakthrough
unaided, including leading direct banks. Chase, formerly in second
place behind Capital One, has pulled even with its competitor on ad
awareness, with Bank of America and Wells Fargo not far behind.
Citi, USAA and Ally are the newcomers to the 4%-and-higher
"Big three" competitor updates:
Bank of America. Early data, though still
inconclusive, suggests Bank of America is attracting more new
primary bank relationships in 2015, and losing fewer, than was true
in 2014. Several factors are driving Bank of America's results in
the marketplace, including an improving customer experience, a
strengthening brand, and a decline in negative press and
Chase. Chase continues to grow market share
impressively in 2015. Hints earlier this year that momentum was
slowing have now disappeared. Total penetration and primary share
are both up. And customer satisfaction, which had flattened in
recent quarters, is moving up again.
Wells Fargo. Customer satisfaction at Wells
Fargo has risen over the past year. The Wells Fargo brand is better
known and more favorably regarded than at any time in at least six
Source: Kantar TNS