How and why do customers choose fintechs or incumbents for their banking needs? Corporate Insight’s Fintech Monitor team recently published a report examining these questions, analyzing a survey of 972 bank account holders. This survey report examines customers with fintech accounts only, incumbent bank accounts only, and those with both types of accounts, offering valuable insights for financial institutions looking to enhance customer retention and acquisition strategies.
Watch our on demand webinar to see key findings from this survey and report. The webinar, hosted by senior analyst Will Jack, offers new insights on preferences across generations, income levels, and banking relationships. Stay for a Q&A featuring audience questions on the forces that drive today’s consumers to select a fintech or an incumbent for their banking needs.
Below, we’ll preview two of the key findings from the webinar.
Generational Divides Shape Banking Preferences
One of the biggest findings from this survey: There are stark generational differences in the forces that drive banking preferences. And while it may not be shocking that Boomers have different priorities when choosing a bank than Gen Z, the breakdown of these priorities contains some surprises.
Fees, for example, mattered more to Boomers than to Gen Z. The fintech value prop relies in part on no- and low-fee accounts, with the carrot of rewards influencing customer behavior instead of the metaphorical stick of overdraft and minimum balance fees. Low fees are indeed one of the primary drivers of satisfaction with fintechs, as seen in the next section. The surprise is that one might expect lower income groups, like Gen Z, to be more sensitive to fees when choosing a bank. Yet our survey found that account and ATM usage fees were more important to Boomer+ respondents. The survey also found that older respondents prioritize physical branch access and customer service quality when choosing a bank.
Younger generations take a more holistic approach when picking a bank. Gen Z respondents are significantly influenced by recommendations from friends and family, as well as a bank’s social values, showing a stronger emphasis on social factors. Friends matter more than fees when it comes to Gen Z.
Satisfaction not guaranteed: Younger generations are less satisfied with their banks
While 81% of Boomer+ and Gen X respondents expressed high satisfaction with their bank’s digital interface design, only 40% of Gen Z respondents felt the same. This pattern of lower satisfaction scores from Gen Z repeats for other aspects, including customer service quality and spending tools.
The satisfaction metrics also reveal different strengths across banking models. Fintech customers show higher satisfaction with monetary benefits, particularly fees (94%), APY rates (93% satisfaction) and P2P payment capabilities (92% satisfaction). Traditional bank customers, while generally satisfied across all services, show notably lower satisfaction with APY rates (63%) but higher satisfaction with security features (91%) and human customer service access (84%).
We also found a generational divide in satisfaction with digital experiences. Younger fintech users prove to be more discerning critics of digital experiences. While 88% of Boomer+ and Gen X respondents expressed extreme satisfaction with spending tracking tools, only 40% of Gen Z respondents shared this sentiment—suggesting that digital natives have higher expectations for financial technology interfaces.
“This report shows that financial institutions need tailored strategies for different demographic segments,” says Jack. “While traditional banks maintain strong customer loyalty, especially among older generations, they must enhance their digital capabilities to compete with fintechs that excel in these areas. Conversely, fintechs should consider how they might address the branch access and customer service features that continue to resonate with many consumers.”
The full report examines account opening considerations, satisfaction levels, reasons for changing banks, and platform usage patterns across different demographic segments. Watch the webinar today for an in-depth exploration of this survey and to learn why customers choose fintechs or incumbents.