Changing Attitudes on Banking Create Challenges and Opportunities, Acxiom Study Reveals
25 February 2010 - 3:00AM
Business Wire
Young adults just starting out may be a stronger-than-ever
target for retail banks – just one of several findings from Acxiom®
Corporation’s (Nasdaq: ACXM) inaugural Retail Banking Consumer
Dynamics study, designed to help marketers understand shifting
consumer behaviors emerging from the recession.
Young adults are avoiding running up debt, becoming consumers to
watch as they take advantage of favorable conditions to make
large-ticket purchases such as homes and furniture. “It’s a unique
time to establish relationships with these young customers and
communicate with them about products such as mortgage financing,
retirement savings and investment education,” said Randy Watson,
Acxiom vice president of account management.
Acxiom’s benchmark study, the first in an ongoing series, helps
financial institutions understand their challenges in growing their
business across three fronts – a crisis of trust, regulatory
changes and the emergence of virtual and mobile banking. Among the
findings, based on 12 consumer segments identified by Acxiom:
Affluent Families: A Delicate Balancing Act
- Affluent Families don’t want to
yield much when it comes to their lifestyle aspirations and needs,
but they recognize the need to better control their finances during
a downturn
- While they appear more likely to
purchase high-ticket items in the near future, they are also
attempting to pay down debt and pay as they go with cash when
possible
A Consumer to Watch: Young Adults
- Young adults in the Starting Out
segment are in tune with today’s excellent real-estate values,
mortgage rates and government tax credits
- They may have modest means, but
these consumers are more likely than the other 11 segments to
purchase a home within the next six months
- “Their strong intent to make
significant purchases, combined with renewed financial
responsibility, indicate a unique opportunity for retail banks to
build a more robust relationship with young adults early on – which
could lead to potential long-term and loyal customers,” said
Watson.
Customers and Their Banks – Relationships in
Transition
- Everyone has made adjustments in
response to economic pressures, with 38% of respondents focused on
paying down debt
- Regardless of economic status, 1
in 4 customers will shop around before buying financial
products
- Mainstream and Retired segments
are more likely than Affluent consumers to prefer local or
community banks, while Affluent consumers lean toward national,
super-regional/regional banks and credit unions
- 32% of respondents said they
would consider distributing their business across multiple
institutions, indicating that consumers are still wary of financial
institutions and prefer to spread their risk across banks, with
Affluent segments most likely to spread their wealth
Although a Threat, Virtual Banking Still a Small Piece of the
Pie
- Although virtual banking, such
as ING Direct, may be growing, it still represents only 3% of all
banking relationships
- Respondents who said they prefer
virtual banking are made up mainly of affluent, younger market
segments. Given the increasing importance of these markets, this
indicates the channel is not to be ignored and traditional
brick-and-mortar banks may want to consider incorporating an
online-only banking solution with incentives as part of a
multichannel product offering.
“The bottom line is that the recession and the banking crisis
have had a long-lasting impact on consumers’ preferences and
financial behaviors,” said Watson. “Now, more than ever, financial
institutions need to pay attention to important emerging segments
such as young adults, focus on competing at the product level
instead of the overall brand level and continue to engage consumers
in a multichannel relationship.”
For a copy of the study and to learn more about the consumer
segments included in the study, visit www.acxiom.com/retbankcondyn.
For more information on Acxiom products and services, call
1-888-3ACXIOM or visit www.acxiom.com.
About Acxiom
A global leader in interactive marketing services and
infrastructure management, Acxiom connects clients with their
customers through deep customer insight, powering effective and
profitable marketing initiatives and business decisions. Our
consultative approach spans multiple industries and incorporates
decades of experience in consumer data and analytics, information
technology, data integration and consulting solutions for effective
marketing across digital, Internet, email, mobile and direct mail
channels. Our secure, high-performance technology services deliver
consistent value and reliability. Founded in 1969, Acxiom is
headquartered in Little Rock, Arkansas, and serves clients around
the world from locations in the United States, Europe, Middle East
and Asia-Pacific. For more information about Acxiom, visit
www.acxiom.com.
Acxiom is a trademark of Acxiom Corporation.
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