42% of Consumers Will Switch FIs for Bundled Banking

Many consumers like the idea of having all their banking products reside within the same financial institution, as long as banks and FIs can overcome some consumer worries.

The topic is analyzed in “Bundled Banking Products: Matching Product Offerings With Customer Demand,” a PYMNTS and Amount collaboration based on a survey of nearly 2,300 consumers.

Data from the study shows that bundled accounts are usually a single service offering from a bank that includes multiple offerings including a checking account, debit card, and/or a credit card. Bundling like this is popular with many customers because of basic convenience and helps solidify a bank’s relationships with its depositors and borrowers.

In all, 42% of the consumers PYMNTS surveyed say they would be at least somewhat likely to leave a bank that did not bundle its offerings into a package for their convenience.

And even though 57% of respondents like the ease and convenience of bundled banking, consumers also have concerns about bundled banking products that banks and FIs need to address to keep those account holders.

Per the study, “Fears about fraud and concerns about complexity are the top reasons why some consumers are not interested in bundled banking solutions that give payment recommendations,” with 16% of consumers showing little to no interest in bundled solutions due to concerns about fraud. Another 15% also worry about fraud but do not cite this as the main reason for their lack of enthusiasm.

Another 21% of the consumers not interested in bundled solutions say their concerns about complexity are the main reason behind their lack of interest, whereas 10% of consumers not interested in a bundled solution say their concern about the theft of their personal information is the main reason they do not want their accounts bundled together.

Despite these concerns, the study notes that “Many consumers are willing to leave banks that fail to offer bundled services that enhance their convenience and desire to have a range of payment options at their disposal. Because banking today involves many options and products, a key consideration seems to be simplicity, as several groups of consumers are seeking bundles to obtain recommendations about which payment methods are best for specific transactions.”

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