Communities are important to consumers. PYMNTS’ data finds that a financial institution’s (FI’s) lack of support for local charities can persuade one-third of customers to move their accounts elsewhere, and the age groups most impacted by charity participation are critical: bridge millennials and millennials.
Consumers also often demonstrate their affinity for the towns and cities where they live by supporting local charities and businesses. Our data finds that these two types of support often overlap: the stronger a consumer’s support for charities, the greater their patronage of local merchants and restaurants.
These are just a few of the key findings in “Financial Institutions and Customer Loyalty: The Value Of Investing In Your Community,” a PYMNTS and Elan collaboration. We surveyed 2,504 United States consumers from April 28 to May 4 about charitable giving in their local areas and how it influences their decisions in choosing a primary FI and the businesses they visit.
The financial support and the time spent supporting charities indicate the fondness many consumers exhibit for the places they live — and the kind of support consumers want to see from the financial institutions in their hometowns.
• Forty-three percent of consumers’ charitable donations are given to groups within their local communities.
This is indicative of the importance consumers attach to the groups that are active in their communities and the type of support they want to see from the places where they do business, including FIs.
This helps signify that it is not only the most charitable consumers who support their community. Throughout our study, we found other differences between consumers who volunteer and those who do not.
FIs recognize that success in most communities requires them to demonstrate their support for the community to their customer base. The more FIs respond to customer priorities and support the local community, the greater their likelihood of success.
To learn more about how FIs are investing in their communities to strengthen the bonds they have with customers, download the report.