The latest Aite Group report finds that Gen Zers and millennials represent almost half of U.S. consumers making transfers.
Boston, March 16, 2021 — While only a minority of U.S. consumers transfer funds between accounts held at different financial institutions over a 12-month period, this group of U.S. consumers is a key segment for financial institutions to understand. Consumers transferring money regularly between financial institutions earn more and own more financial assets compared to regular consumers. Putting in the effort to understand and improve service for these consumers is good for profitability and can help the firm attract Gen Z and millennial consumers. Profiling U.S. Consumers Who Make Interfirm A2A Transfers, part two of a three-part Aite Group report series, provides annual estimates of the number and value of interfirm account-to-account transfers by generation along with the reasons for the transfer and channels used.
“The growing ease and speed with which U.S. consumers can transfer funds, especially deposits, between financial institutions creates an urgency among financial institutions to better understand the demographics, financial profile, and preferences of those making interfirm transfers,” explains Sophie Schmitt, senior analyst at Aite Group. “The majority of U.S. consumers who make transfers are under the age of 55. While this segment holds less than a third of financial assets, understanding how they manage their assets across financial institutions is critical for capturing next-generation assets,” she adds.
This Impact Report examines the consumers to better understand their financial profile, financial institution relationships, account ownership, and how they manage their investments. It is based on a Q2 2020 Aite Group and Visa Inc. survey of U.S. consumers ages 18 or older. In total, 16,452 U.S. consumers completed the survey’s questionnaire, and 2,199 had a debit card and made at least one transfer between accounts at different financial institutions in the 12-month period prior to the start of the COVID-19 pandemic.
About Aite Group: Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.