New Consumer Preferences Impact Bank and Credit Card Marketing in 2022

• Author:

New Consumer Preferences Impact Bank and Credit Card Marketing in 2022

Several industry organizations released reports in the second half of 2021 based, at least in part, on consumer data. After combing through research by PYMNTS/Elan, Accenture, Attest, FICO and Square, we’ve compiled some findings that may have an impact on your bank and credit card marketing efforts. As you prepare to tackle goals for acquisition, retention, usage and engagement, we invite you to consider the following consumer preferences heading into 2022.

What consumers want from financial institutions and products

  • It’s not enough for a credit card to have a competitive interest rate. 75% of consumers also consider card features like rewards, privacy protection and credit-building tools.1
  • Speaking of credit-building, data1 indicates that these tools are a key decision-making factor for 75% of active card users who are parents.
  • Accenture reports3 that the pandemic caused 50% of consumers – dubbed the Reimagined – to “rethink their personal purpose, re-evaluate what’s important to them in life… and change their buying habits accordingly,” including where they bank.
  • Data3 on retail banking shows that 46% of these Reimagined consumers are willing to switch banks if online appointments and extended self-service options aren’t available, and 32% are willing to pay to keep these options.
  • Half of consumers say4 the quality of an FI’s app is “a primary consideration factor when choosing a bank.”
  • Reimagined consumers are motivated by sustainable FS products (like investments): 44% are willing to switch to get it, and 34% are willing to pay to retain it.3
Article continues below

Consumer purchasing and media habits

  • Gen Z doesn’t want brands in their inbox, according to Attest, which says, “You’ll have more luck with this age group on TikTok,” where 45% connect with brands.2
  • “83% of people in the U.S. say they follow and interact with brands on social media” (Source: Attest2).
  • In the U.S., Millennials are the demographic most likely2 to be saving up for big purchases like home improvements, cars, mortgage down payments, weddings, business ventures and cosmetic surgery/dentistry.
  • Consumers in the U.S. are returning to restaurants: Nearly half dine out at least once a week.2
  • Gen Z (26%) and Millennials (24.5%) are most likely to have added pets to their families during the pandemic.2
  • When it comes to payments, “36% of consumers prefer to pay using a contactless option, compared to 42% for conventional credit card transactions, while 9% prefer to use a mobile wallet” (Source: Digital Transactions5).
  • Preference for mobile wallets among Gen Z is particularly high: 21% prefer to pay with their devices, compared to 24% who would choose a credit card.5
  • According to e-commerce data,5 “Consumers are making 37% of their monthly purchases online.”

Additional consumer preferences that impact buying decisions and loyalty

  • FICO reports4 that “90% of Americans use customer service as a factor in deciding whether or not to do business with a company.”
  • 36% of U.S. consumers say it’s important for brands to take a stand on social issues and rank the three most important as poverty, inequality/racism and climate change.2
  • 82% of U.S. consumers want brands to offer more human interaction.4
  • 72% of the Reimagined – the consumer group identified by Accenture – expect companies to address their needs during times of disruption,3 but currently, just 38% of U.S. consumers say their needs are understood.4
  • 44% of these Reimagined consumers are willing to switch banks if theirs doesn’t take visible actions for positive societal impact.3

***

1. The Convenience Catalyst: How Consumer Experience Features Drive Credit Card Usage, a report from PYMNTS and Elan (December 2021)

2. 2022 US Consumer Trends Report, Attest (December 2021)

3. Life Reimagined: Mapping the Motivations That Matter for Today’s Consumers, Accenture (2021)

4. 2022 FICO Trends Report (December 2021)

5. The Future of Commerce Reports: 2022 Edition from Square (December 2021), as reported by Digital Transactions

See Related Stories

higher consumer expectations impact financial services

A Digital-First, Data-Forward Approach to the Financial Services Customer Experience

Pressure on financial institutions to match the customer experience of tech-based companies isn’t new. For years now, the convenience of on-demand services from wildly popular brands like Apple, Amazon and Uber has been changing the way consumers interact with companies. See why our team thinks there are now solid opportunities for FIs to reach the higher bar and retain customers.