October 9, 2023

ABA: New National Survey Finds U.S. Consumers Remain Happy with Their Bank and Competitive Financial Services Marketplace

Survey also found consumers highly value overdraft protection and want Congress to allow banks to serve cannabis-related businesses

More than 8 in 10 Americans (84%) say they are “very satisfied” or “satisfied” with their primary bank, and 94% rate their bank’s customer service as “excellent,” “very good” or “good,” according to a new survey conducted by Morning Consult on behalf of the American Bankers Association. The survey, unveiled today at the start of ABA’s 2023 Annual Convention in Nashville, Tenn., also gauged consumers’ views on access to banking services, overdraft protection and cannabis banking. 

By a wide margin, the survey shows that  consumers believe they have ample access to banking services in the U.S., and they think the banking marketplace is highly competitive. Eight in 10 (79%) said innovation and technological improvements by banks are making it easier for all Americans to access financial services. Eight in 10 (79%) agree they have multiple options when selecting products and services such as bank accounts, loans and credit cards, and 76% said they have a wide array of choices when deciding where to bank. Three in four consumers (73%) believe the financial services industry is highly competitive, and 8 in 10 (78%) believe their bank is transparent about disclosing fees.

“This new survey shows that Americans remain happy with their bank and its ability to meet their evolving financial needs,” said Rob Nichols, ABA president and CEO. “The results also speak to the highly competitive financial services marketplace, which ensures that consumers can pick and choose the banking products and services they want from a wide array of providers.”

Consumers Believe Now is Not the Time for Additional Bank Regulatory Requirements

The survey also found a strong majority of survey respondents agree that additional regulatory requirements on banks could do more harm than good given the state of the economy. By a 3-to-1 margin (61% agree vs. 18% disagree), consumers believe that given the economic challenges facing the country, including inflation and slowing growth, this is not the time to add additional regulatory requirements that will restrict bank lending. By a similar margin (58% agree vs. 20% disagree), consumers agree they are concerned that if regulations go beyond what is needed for safety and soundness, they may have a harder time obtaining a mortgage or other loan from their bank.

“The survey results should give regulators pause before they decide to move forward with major new regulatory requirements for banks,” said Nichols. “Americans understand and appreciate that asking already well-capitalized banks to hold more capital and other major regulatory changes will simply make it harder for banks of all sizes to support an already uncertain economy.”

U.S. Adults Value Overdraft Protection, Think Congress Should Allow Cannabis Banking

The survey also shows a strong majority of Americans appreciate and value bank overdraft programs. For the fourth year in a row, 9 in 10 consumers (88%) find their bank’s overdraft protection valuable, and nearly 8 in 10 consumers (77%) who have paid an overdraft fee in the past year were glad their bank covered their overdraft payment, rather than returning or declining payment. Sixty-three percent of consumers think it’s reasonable for banks to charge a fee for an overdraft, as opposed to only 24% who think it’s unreasonable.

The data released today also indicate that by greater than a 2-to-1 margin (55% support vs 23% oppose) U.S. adults support Congress passing legislation that allows cannabis businesses to access banking services.

“In the wake of the recent Senate Banking Committee vote to advance the SAFER Banking Act, this new data indicates that Americans believe Congress should end the ongoing conflict between state and federal law on cannabis banking issues by passing this urgently needed, bipartisan legislation that will enhance public safety,” said Nichols.

ABA released an accompanying infographic highlighting some of the survey results. The data released today are the first in a series of results gauging consumers’ preferences and opinions regarding banks and their services. ABA will release more results from the new Morning Consult survey in the days ahead. The full results for the survey questions released today are as follows:

When asked “On a scale of 1-5, where 5 is excellent and 1 is poor, how would you rate your primary bank’s customer service?” those with a bank account provided the following responses:

When asked “On a scale of 1-5, where 5 is very satisfied and 1 is very dissatisfied, how satisfied are you with your primary bank?” respondents who have a bank account provided the following responses:

When asked “Do you agree or disagree with the following statement? Innovation and technology improvements by banks are making it easier for all Americans to have access to financial services” consumers provided the following responses:

When asked “Do you agree or disagree that you have multiple options to choose from when selecting financial products and services such as bank accounts, loans, and/or credit cards?” consumers provided the following responses:

When asked “Do you agree or disagree with the following statement? I have a wide array of choices when deciding where to bank” consumers provided the following responses:

When asked “Do you agree or disagree with the following statement? The financial services industry is highly competitive” consumers provided the following responses:

When asked “Based on what you know, how transparent do you believe your primary bank is about disclosing the fees you are charged?” consumers provided the following answers:

When asked “Do you agree or disagree with the following statement? Given the economic challenges facing the country including inflation and slowing growth, this is not the time to add additional regulatory requirements that will restrict bank lending.” consumers provided the following responses: 

When asked “Do you agree or disagree with the following statement? I am concerned that if regulations go beyond what is needed for safety and soundness, I may have a harder time obtaining a mortgage or other loan from my bank.” consumers provided the following responses: 

When asked “How valuable do you find the overdraft protection offered by your bank?” consumers provided the following responses:

When asked “Regarding the bank covering your overdraft payment, were you glad the payment was covered, or would you have preferred the bank return or decline the payment?” consumers who have paid an overdraft fee in the past year provided the following answers:

When asked “How reasonable is it, in your opinion, for banks to charge fees for overdrafts?” consumers provided the following answers:

When asked “Do you support or oppose Congress passing legislation that allows cannabis businesses to have access to banking services and financial products (like checking accounts and business loans) in states where cannabis is legal?” consumers provided the following responses:

About the Survey

This poll was conducted by Morning Consult on behalf of the American Bankers Association from September 20-22, 2023, among a national sample of 2,211 adults. The interviews were conducted online and the data were weighted to approximate a target sample of adults based on age, race/ethnicity, gender, educational attainment, and region. Results from the full survey have a margin of error of plus or minus 2 percentage points.

This post was originally published here.