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Even before the recent economic challenges and notable bank failures, consumers of all ages have been attracted to large national banks for their credit card loyalty programs and mobile capabilities. This is especially true for the largest consumer group, Millennials (the generation born between the early 1980s and the mid-1990s). While older generations such as Baby Boomers and GenX also hold accounts with many of the same large national banks, they are more likely to utilize a smaller regional bank or credit union than their younger counterparts.
| Consumers with Checking or Savings Accounts at a Large National Bank |
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Source: Keypoint Intelligence’s 2022
Customer Communications Experience Consumer Survey |
Millennials Are Attracted to the Biggest Brands
When it comes to banking, many assume that tech-savvy and environmentally-conscious Millennials would prefer to work with online-only banks or local community banks. However, our 2022 Customer Communications Experience Survey found that when asked to select from a list of the largest national banks, a local/regional bank, or a credit union, 93% of Millennials indicated they held an account with the largest brands as Bank of America, Wells Fargo, JPMorgan Chase, or Citigroup. Only 5% of Millennials had accounts in a credit union (compared to 11% for all generations).
Loyalty Credit Cards Drive Engagement
Our survey found that 64% of Millennials say they track credit card rewards such as cashback, travel points, and retail credits compared to 52% of consumers of all ages. Additionally, 51% of Millennials say they “always” engage in or read communications related to their credit card loyalty programs versus 43% of consumers of all ages, making loyalty-related communications highly effective.
Many of the most popular loyalty cards are issued by a few large US banks, which plays a significant role in younger generations' preference for large national banks.
Mobile Technology Is Key
Millennials want a bank that offers the latest mobile capabilities to make their banking experience as seamless and efficient as possible, including accessing information and making payments. Large national banks have more resources to invest in digital technology and innovation. Our survey found that 32% of Millennials prefer using their banking providers’ mobile apps to access information about their accounts, compared to 22% of all respondents. Additionally, 38% of Millennials were the most likely to pay their bills using their provider’s mobile app compared to 29% of all consumers.
Keypoint Intelligence Opinion
Younger generations—especially Millennials—prefer large national banks for several reasons, including brand recognition, rewards and perks offered through loyalty credit cards, and mobile innovation. While smaller regional banks and credit unions may offer personalized service and a sense of community, younger customers are prioritizing the benefits that come with larger banks. The banking industry is constantly evolving, and it will be interesting to see how these trends continue to shape the customer communications industry.
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