The Data Point: Younger Consumers Seek Convenience of Bundled Banking

In a world of disintermediated financial products, consumers still show a strong propensity for one banking relationship that brings it all together — and many will switch to get that.

For “Bundled Banking Products: Matching Product Offerings With Customer Demand,” a PYMNTS and Amount collaboration, we surveyed nearly 2,300 U.S. consumers about their interest in bundled banking products, and the reasons some are moving elsewhere for better bundling.

“Bundled accounts are usually a single service offering from a bank that include multiple offerings, such as a checking account, debit card and/or a credit card,” the study states. “These accounts are often popular with customers because of their convenience and can help solidify a bank’s relationships with its depositors and borrowers.”

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• 71% of consumers interested in having their accounts managed by a single financial institution say bundling makes it easier and more convenient to manage accounts

Convenience is currency to many consumers today. The digital shift has habituated billions of consumers to the ease and anywhere contextuality of digital banking, and many now want this wealth of digital financial services delivered by a single trusted financial institution (FI).

“Four out of 10 consumers say it would be easier and more convenient for them to manage their banking accounts if they were bundled with a single FI instead of distributed among several banks. Ease and convenience typically lead among factors that affect consumers’ banking preferences. Overall, 71% of consumers interested in having their accounts managed by a single FI say bundling would make it easier and more convenient to manage their accounts,” the study states.

• 65% of bridge millennials and 64% of millennials would consider moving their accounts out of banks that do not offer bundled banking products

Our research revealed that younger demographic groups show greater interest in having bundled products from a single financial institution. Generation Z consumers and millennials particularly want bundled products from a single bank or other financial institution, at 55% and 51%, respectively.

Additionally, the study notes that “as consumers use more banking products, they become more likely to switch from banks that do not offer bundled solutions. While 18% of consumers who use between four and six products from their primary FIs are very or extremely likely to switch banks if their current FIs do not offer bundled banking solutions, this share increases to 37% for consumers who use more than six products from their primary FIs.”

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