Customers’ top reasons for choosing a bank should inform financial institutions’ marketing strategies

The news: Most customers choose a financial institution (FI) because they recognize and trust the brand, per EPAM’s Consumer Banking Report 2024. That’s followed by branch access, and family or friend recommendations.

• These are the findings from a survey of 9,000 consumers in Australia, Canada, Germany, Hong Kong, Italy, Saudi Arabia, Singapore, the UK, and the US, conducted in October 2023 by Opinium Research.

By the numbers: In this survey, customers’ reasons for choosing their primary banks aligned with our previous findings. For example:

• 37% of respondents said the top factor was trust and brand recognition, outweighing all other factors. Banks still have a long way to go in building consumer trust, so those that can accomplish this quickly will get an edge over their competitors.
• 33% of respondents prioritize access to a local branch. That’s why some big banks have prioritized expanding and “localizing” their branch presence to compete with smaller competitors.
• 24% said they bank where their family or friends have relationships. This is true of Gen Zers in particular, but it also suggests that relational marketing could be key to acquiring customers across all age groups.

It’s worth noting that these three factors far outweighed others like value alignment, special offers for new customers, a workplace’s relationship with a bank, or seeing an FI on social media.

How do FIs break through? Those that are comparatively unknown need to somehow attain brand recognition and build trust. They may not yet have developed many relationships that turn into referrals, limiting the approaches they can take.

The same survey found that the top reason consumers cited for their satisfaction with a bank was “great customer service.” FIs of any size can offer that, and it could give them a way in.

Marketing takeaway: Marketing efforts help banks to build brand recognition and trust, simulating recommendations from trusted sources. To attain this, campaigns should feel authentic and unscripted, as though someone they know and trust is sharing a story.

• For example, FIs should amplify real, diverse customer stories in all ads, and consider partnering with influencers.
• Since branches are a key differentiating factor, some of these customer stories should feature an FI’s customer service at the branch, if they have a local presence.