US generational banking report
A third of people said they “strictly” use traditional banks, ditching digital-only completely
Commissioned by UserTesting and conducted by OnePoll, the study also revealed that when it comes to finances and banking, people across all generations prefer a human touch — 83% said they prefer using a traditional bank for their financial needs.
A third of people (36%) said they “strictly” use traditional banks, ditching digital-only completely—including 40% of Gen Z and 34% of baby boomers. In comparison, only 10% overall said they rather use a digital bank with no physical presence.
People who prefer traditional banks said they like having the confidence that their transactions are being handled correctly (60%) and being able to talk to a human (51%).
“We’re seeing a strange dichotomy in banking unfolding in front of us,” said Dana Bishop, VP of Experience Research Strategy at UserTesting. “We know physical banking branches are closing in droves, yet the data here support that consumers, especially in younger generations, crave the benefits that traditional banks provide. Digital banking platforms should consider this when implementing new services to meet these more human-oriented banking needs.”
While many said they prefer traditional banks, 67% said they still trust digital wallets and mobile banking apps – most popular amongst younger generations (76% of Gen Z and 86% of millennials) and least popular for baby boomers (48%).
Two in five (41%) prefer mobile payment apps to send money back and forth, and 53% do so up to five times per month.
Six in 10 (60%) also admitted they’re more likely to spend money frivolously when using digital payment options.
Four in five (79%) digital bank users wished their banks offered some of the perks traditional banks already have — such as the 45% who wish digital banks offered the ability to talk to humans for customer support.
Out of all the respondents surveyed, Gen Z rather talks to humans the most (60%), compared to the Silent generation (49%) and baby boomers (28%).
“In reality, there’s still an open space for hybrid institutions to exist,” continued Bishop. “Both digital and traditional banking platforms have their exclusive benefits, but there is a clear want and need for institutions to exist in both physical and digital worlds, providing the shared perks either can offer.”
Hear what respondents have to say.
Top 3 monthly budget spends per generation
Gen Z
- Groceries: 48%
- Credit card debt - 41%
- Rent - 39%
Millenial
- Groceries - 55%
- Credit card debt - 46%
- Utilities - 44%
Gen X
- Groceries - 45%
- Rent/mortgage - 38%
- Utilities - 38%
Baby Boomer
- Groceries - 47%
- Utilities - 43%
- Rent/mortgage - 31%
Silent gen
- Groceries - 45%
- Rent/mortgage - 43%
- Loans – 39%
A poll of 1,800 US adults found, across the board, 48% said their grocery costs are eating up the majority of their monthly budget, followed by utility bills (38%) and credit card debt (37%).
Younger Americans are also focused on their financial positioning for the future. Thirty-eight percent of Gen Zers are delegating the majority of their monthly budget towards loans, while 46% of millennials are likewise spending most of their money tackling credit card debt.
Meanwhile, 45% of Gen X is spending the most on groceries, 43% of baby boomers are paying the most on utility bills, and 43% of the Silent Generation are forking up the most for their rent and/or mortgages.
Gen X is spending the most on groceries, while baby boomers are paying the most on utility bills
Enough talk about millennials and their avocado-toast-buying ways—new data suggests every generation is at risk of spending too much cash on their grub.
A poll of 1,800 US adults found, across the board, 48% said their grocery costs are eating up the majority of their monthly budget, followed by utility bills (38%) and credit card debt (37%).
Younger Americans are also focused on their financial positioning for the future. Thirty-eight percent of Gen Zers are delegating the majority of their monthly budget towards loans, while 46% of millennials are likewise spending most of their money tackling credit card debt.
Meanwhile, 45% of Gen X is spending the most on groceries, 43% of baby boomers are paying the most on utility bills, and 43% of the Silent Generation are forking up the most for their rent and/or mortgages.
Survey methodology
UserTesting commissioned this random double-opt-in survey of 1,800 Americans with bank accounts between March 3 and April 12, 2023. It was conducted by market research company OnePoll, whose team members are members of the Market Research Society and have corporate membership to the American Association for Public Opinion Research (AAPOR) and the European Society for Opinion and Marketing Research (ESOMAR).
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