Retail Banking - US - October 2007

Table of Contents

• Scope and Themes
• What you need to know
• Scope of this report
• Consumer research methodology
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Top industry trends
• Economic and financial overview
• Service channels
• Are Wal-Mart and other retailers a threat?
• Mintel' s consumer survey -- what do consumers think of their banks?
• Dispelling common notions regarding Hispanic consumers
• Do I like my bank?
• The bundled-service myth
• Should I switch banks?
• What would make me change my bank?
• The Wal-Mart threat
• Big-bank customers vs. those of other financial institutions
• The Retail Banking Environment
• Economic influences
• Introduction
  • Figure 1: Higher bank loss provisions contribute to earnings decline, Q2 2006-Q2 2007
• Uncertain housing market
  • Figure 2: Private housing starts, 1993-2006
• Are businesses righting the economic ship?
  • Figure 3: Capital spending, 2000-07
• Consumers in debt
• Credit card debt
• Mortgages
  • Figure 4: Noncurrent mortgages and HELOCs, 2004-07
• Foreclosures
• Trends and Factors Driving Retail Banking
• Banking industry developments
• Trends in number of banks and banking assets
  • Figure 5: Number of banks, and share of assets at the largest banks, 1990-2006
  • Figure 6: Change in number of banks, 2001-06
  • Figure 7: Asset size distribution among banks, 2001-06
• Investigation of banking fees
  • Figure 8: Estimated fee-based overdraft loan fees paid by consumers, 2004 and 2006
• Demographic factors
• Population changes
  • Figure 9: Projected population of the United States, by race and hispanic origin: 2000-50
• Hispanic buying power
  • Figure 10: Hispanic disposable income in the ten states with the largest Hispanic markets, 2006
• The bank/customer relationship
• Does "customer delight" exist?
• Branches
• A web of opportunity (and threats)
• Identity theft, security, and fraud
• Technological innovations
• Young consumers and technology
• "Wal-Martization" of banking
• Using data to sell new products and services
• Market Size and Trends
• Total assets
  • Figure 11: Assets of FDIC-insured banking organizations, 12/91-06/07
  • Figure 12: Total assets of FDIC-insured banking organizations, and number of institutions, 1990 -- Q2 2007
• Assets by organization
  • Figure 13: Top 20 U.S. banking institutions, by total assets, 06/30/2007
  • Figure 14: Top ten bank and thrift holding companies by deposits, June 30, 2007
  • Figure 15: Number of banks with total assets over $20 billion, 2003-07
• Advertising and Promotion
• Online
• Direct mail
• Top ten overall banking mailers, April 2006-June 2007
• Top ten checking mailers, April 2006-June 2007
• Notable checking account mailers, 2007
  • Figure 16: Wachovia Bank, 2007
  • Figure 17: ING Direct mail creative, media ID 20070702-11072
• Top ten debit card mailers, April 2006-June 2007
• Notable debit card mailers, 2007
  • Figure 18: Wamu debit mastercard direct mail creative, 2007
  • Figure 19: Citibank direct mail creative, 2007
• Top ten online banking services mailers, April 2006-June 2007
• Notable online banking services mailers, 2007
  • Figure 20: Bank of America direct mail creative, 2007
  • Figure 21: Fifth Third Bank direct mail creative, 2007
• Building loyalty through savings advertising
  • Figure 22: Keycorp print creative, 2007
• Targeting Hispanic consumers
• Television
• Citi
• Bank of America
• National City
• Chase
• The Banking Consumer
• Banked and unbanked
  • Figure 23: Retail banking account use, by gender and age, August 2007
  • Figure 24: Retail banking account use, by race/ethnicity, August 2007
  • Figure 25: Retail banking account use, by education, August 2007
  • Figure 26: Retail banking account use, by marital status, August 2007
• Where do consumers bank?
  • Figure 27: Primary financial services provider, by gender, August 2007
  • Figure 28: Primary financial services provider, by age, August 2007
  • Figure 29: Primary financial services provider, by household income, August 2007
  • Figure 30: Primary financial services provider, by race/ethnicity, August 2007
  • Figure 31: Primary financial services provider, by region, August 2007
  • Figure 32: Primary financial services provider, by education level, August 2007
• Primary method used to pay household bills
  • Figure 33: Method of paying household bills, by gender, August 2007
  • Figure 34: Method of paying household bills, by age, August 2007
  • Figure 35: Method of paying household bills, by household income, August 2007
  • Figure 36: Method of paying household bills, by race/ethnicity, August 2007
  • Figure 37: Method of paying household bills, by education level, August 2007
• Consumer banking and the Internet
• Length of online billpay use
  • Figure 38: Use of online billpay, by gender, August 2007
  • Figure 39: Use of online billpay, by age group, August 2007
  • Figure 40: Use of online billpay, by household income, August 2007
  • Figure 41: Use of online billpay, by education, August 2007
• Services conducted primarily online
  • Figure 42: Services conducted primarily online, by gender, August 2007
  • Figure 43: Services conducted primarily online, by age group, August 2007
  • Figure 44: Services conducted primarily online, by household income, August 2007
  • Figure 45: Services conducted primarily online, by race/ethnicity, August 2007
  • Figure 46: Services conducted primarily online, by education, August 2007
• Noteworthy attributes of large bank customers
  • Figure 47: Attributes of large bank customers, August 2007
  • Figure 48: Attributes of large bank customers, use of online billpay, August 2007
  • Figure 49: Attributes of large bank customers, August 2007
  • Figure 50: Attributes of large bank customers, communications preference, August 2007
  • Figure 51: Attributes of large bank customers, August 2007
  • Figure 52: Have switched banks in the last 12 months, August 2007
  • Figure 53: Preferences of large bank customers -- switching behavior, August 2007
  • Figure 54: Number of banking relationships, August 2007
• Consumer Communication and the Banking Relationship
  • Figure 55: Communications preference, by gender, August 2007
  • Figure 56: Communications preference, by age group, August 2007
  • Figure 57: Communications preference, by household income, August 2007
  • Figure 58: Communications preference, by race/ethnicity, August 2007
  • Figure 59: Communications preference, by education level, August 2007
• Preference for ways of communicating with a bank for selected services
• Getting a mortgage
  • Figure 60: Preferred ways of communicating with a bank for: Getting a mortgage, by gender, August 2007
  • Figure 61: Preferred ways of communicating with a bank for: Getting a mortgage, by age, August 2007
  • Figure 62: Preferred ways of communicating with a bank for: Getting a mortgage, by household income, August 2007
  • Figure 63: Preferred ways of communicating with a bank for: Getting a mortgage, by race/ethnicity, August 2007
  • Figure 64: Preferred ways of communicating with a bank for: Getting a mortgage, by education, August 2007
• Financial planning
  • Figure 65: Preferred ways of communicating with a bank for: Financial planning, by gender, August 2007
  • Figure 66: Preferred ways of communicating with a bank for: Financial planning, by age, August 2007
  • Figure 67: Preferred ways of communicating with a bank for: Financial planning, by household income, August 2007
  • Figure 68: Preferred ways of communicating with a bank for: Financial planning, by race/ethnicity, August 2007
  • Figure 69: Preferred ways of communicating with a bank for: Financial planning, by education, August 2007
• Setting up an IRA
  • Figure 70: Preferred ways of communicating with a bank for: Setting up an IRA, by gender, August 2007
  • Figure 71: Preferred ways of communicating with a bank for: Setting up an IRA, by age, August 2007
  • Figure 72: Preferred ways of communicating with a bank for: Setting up an IRA, by household income, August 2007
  • Figure 73: Preferred ways of communicating with a bank for: Setting up an IRA, by race/ethnicity, August 2007
  • Figure 74: Preferred ways of communicating with a bank for: Setting up an IRA, by education, August 2007
• Setting up an educational savings account
  • Figure 75: Preferred ways of communicating with a bank for: Setting up an educational savings account, by gender, August 2007
  • Figure 76: Preferred ways of communicating with a bank for: Setting up an educational savings account, by age, August 2007
  • Figure 77: Preferred ways of communicating with a bank for: Setting up an educational savings account, by income, August 2007
  • Figure 78: Preferred ways of communicating with a bank for: Setting up an educational savings account, by race/ethnicity, August 2007
  • Figure 79: Preferred ways of communicating with a bank for: Setting up an educational savings account, by education, August 2007
• Retirement planning
  • Figure 80: Preferred ways of communicating with a bank for: Retirement planning, by gender, August 2007
  • Figure 81: Preferred ways of communicating with a bank for: Retirement planning, by age, August 2007
  • Figure 82: Preferred ways of communicating with a bank for: Retirement planning, by household income, August 2007
  • Figure 83: Preferred ways of communicating with a bank for: Retirement planning, by race/ethnicity, August 2007
  • Figure 84: Preferred ways of communicating with a bank for: Retirement planning, by education, August 2007
• To refinance my mortgage
  • Figure 85: Preferred ways of communicating with a bank: To refinance my mortgage, by gender, August 2007
  • Figure 86: Preferred ways of communicating with a bank: To refinance my mortgage, by age, August 2007
  • Figure 87: Preferred ways of communicating with a bank: To refinance my mortgage, by income, August 2007
  • Figure 88: Preferred ways of communicating with a bank: To refinance my mortgage, by race/ethnicity, August 2007
  • Figure 89: Preferred ways of communicating with a bank for: Refinancing my mortgage, by education, August 2007
• To apply for a HELOC
  • Figure 90: Preferred ways of communicating with a bank for: Obtaining a home equity line of credit, by gender, August 2007
  • Figure 91: Preferred ways of communicating with a bank: To get a home equity line of credit, by age, August 2007
  • Figure 92: Preferred ways of communicating with a bank: To get a home equity line of credit, by income, August 2007
  • Figure 93: To get a home equity line of credit, by race/ethnicity, August 2007
  • Figure 94: Preferred ways of communicating with a bank: To get a home equity line of credit, by education, August 2007
• Consumer thoughts about their banking relationship
  • Figure 95: Consumer thoughts about their banking relationship, by gender, August 2007
  • Figure 96: Consumer thoughts about their banking relationship, by age, August 2007
  • Figure 97: Consumer thoughts about their banking relationship, by income, August 2007
  • Figure 98: Consumer thoughts about their banking relationship, by race/ethnicity, August 2007
  • Figure 99: Consumer thoughts about their banking relationship, by education, August 2007
• Consumer Loyalty and Factors Driving Loyalty
• Changing primary banks in the last 12 months
  • Figure 100: Change in primary bank, by gender, August 2007
  • Figure 101: Change in primary bank, by age, August 2007
  • Figure 102: Change in primary bank, by income, August 2007
  • Figure 103: Change in primary bank, by race/ethnicity, August 2007
  • Figure 104: Change in primary bank, by education, August 2007
• Potential causes for changing primary banks in the future
  • Figure 105: Potential reasons for switching banks, by gender, August 2007
  • Figure 106: Potential reasons for switching banks, by age, August 2007
  • Figure 107: Potential reasons for switching banks, by income, August 2007
  • Figure 108: Potential reasons for switching banks, by race/ethnicity, August 2007
  • Figure 109: Potential reasons for switching banks, by education, August 2007
• Number of banking relationships
  • Figure 110: Number of banking relationships, by gender, August 2007
  • Figure 111: Number of banking relationships, by age, August 2007
  • Figure 112: Number of banking relationships, by income, August 2007
  • Figure 113: Number of banking relationships, by race/ethnicity, August 2007
  • Figure 114: Number of banking relationships, by education, August 2007
• Banking with Wal-Mart
  • Figure 115: Demographic characteristics of Wal-Mart customers vs. the U.S. population overall, Spring 2007
• Conducted banking services at Wal-Mart in the last year
  • Figure 116: Banking services at Wal-Mart, by gender, August 2007
  • Figure 117: Banking services at Wal-Mart, by age, August 2007
  • Figure 118: Banking services at Wal-Mart, by income, August 2007
  • Figure 119: Banking services at Wal-Mart, by education, August 2007
• Would you leave your current bank for Wal-Mart?
  • Figure 120: Leave current bank for Wal-Mart, by gender, August 2007
  • Figure 121: Leave current bank for Wal-Mart, by age, August 2007
  • Figure 122: Leave current bank for Wal-Mart, by income, August 2007
  • Figure 123: Leave current bank for Wal-Mart, by race/ethnicity, August 2007
  • Figure 124: Leave current bank for Wal-Mart, by education, August 2007
• Future and Forecast
• Future trends
• Market readjustment
• Real estate woes
• Fees as income
• Technology
• Redefining customer service
• Market forecast
• Assets at FDIC-insured banking organizations
  • Figure 125: Forecast of total assets at FDIC-insured banking organizations, at current and constant prices, 2006-11
  • Figure 126: Graph: Forecast of total assets at FDIC-insured banking organizations, at current and constant prices, 2006-11
• Appendix: Trade Associations