A new study commissioned by financial services company Kasasa has found that lack of branches and ATM locations prevent customers from banking locally.
The consumer study was aimed at identifying reasons why customers hesitate in opening a checking account with a local financial institution.
The lack of branches and ATM locations were cited by 56% of the surveyed individuals. Around 22% of the respondents stated that lack of updated technology at the local institution discouraged them from opening an account.
The unavailability of modern technology acted as the main deterrent among millennial customers, the Kasasa study found.
Around 21% pointed out inferior product offerings for not selecting a local financial institution.
The study, however, also found around 55% would prefer a local bank to open a checking account over national megabanks.
In your opinion, what presents the biggest operational challenge for FS providers in the COVID-19 crisis?
- Switching to large scale homeworking (51%, 162 Votes)
- Retraining the staff (32%, 102 Votes)
- Changing operating hours of branches and call centres (17%, 54 Votes)
Total Voters: 318
Kasasa CEO Gabe Krajicek said: “The idea that community financial institutions don’t offer the same products as megabanks is just not true.
“Kasasa was created to help community banks and credit unions compete aggressively with megabanks by offering products that are innovative, convenient and free to consumers.
“Local financial institutions must use their combined voice to make it known that they are offering similar, if not better, products than megabanks.”
The study was carried out by The Harris Poll among 2,018 adults in the US aged more than 18.
Based in Texas, Kasasa supports more than 900 community financial institutions to increase and retain customers.