The American Bankers Association released a new survey that offers insights into how consumers perceive and value overdraft protection. To gain a deeper understanding of the findings, you can explore the full report here: https://www.aba.com/about-us/press-room/press-releases/consumer-survey-consumers-happy-and-competitive
In a rapidly evolving financial services landscape, it’s essential to grasp what truly matters to consumers. The survey, conducted by Morning Consult on behalf of the ABA, explores consumer sentiments on banking services, including access to banking services, overdraft protection, and even cannabis banking.
Here are key takeaways from the survey:
- Value of Overdraft Protection: For the fourth consecutive year, 9 in 10 consumers (88%) find their bank’s overdraft protection to be valuable. This underscores the importance of this service to ensure consumer needs are met.
- Consumer Preferences on Overdraft Fees: Interestingly, nearly 8 in 10 consumers (77%) who have paid an overdraft fee in the past year expressed satisfaction with their bank covering their overdraft payment rather than returning or declining it. Additionally, 63% of consumers think it’s reasonable for banks to charge a fee for an overdraft, as opposed to only 24% who consider it unreasonable.
- Perception of Competition: Consumer confidence in the financial services industry’s competitiveness is evident, as three in four consumers (73%) believe it to be highly competitive.
- High Consumer Satisfaction: More than 8 in 10 Americans (84%) expressed satisfaction with their primary bank. Even more impressive, 94% rate their primary bank’s service as “excellent,” “very good,” or “good.”
- Transparency Matters: Transparency is a cornerstone of trust. The survey highlights that 8 in 10 consumers (78%) believe their bank is transparent when it comes to disclosing fees.
As financial organizations adapt to the dynamic shifts in the financial arena, understanding consumer perspectives is instrumental. It reinforces the need to continually enhance services to ensure they align with the evolving needs and expectations of consumers.
A big thanks to ABA for this insightful survey!
To learn more about a consumer-first overdraft strategy or to receive a complimentary evaluation, contact your local JMFA representative.
JMFA provides community banks and credit unions with comprehensive overdraft consulting with consumer-focused recommendations, data-driven intelligence, and a 100% compliance guarantee to address your evolving needs. To learn more, contact your local representative or call us at 800-809-2307.