02 Oct Loyal to a fault?
Why we stay with our bank for decades (but would still leave for a freebie)
A first bank account is a rite of passage. It is the moment you feel like a real grown up, with a debit card in your pocket and a bit of financial freedom at last. For most of us, it’s also the start of a long-term relationship.
We recently carried out research surveying 1,500 UK consumers across X, Instagram and Facebook, which revealed just how long many of us stay put.
Headline stat incoming: around six in ten of us (61%) have stayed with the same bank for a decade or more, and a hefty 42% have been with theirs for 20 years or longer. Longer than some marriages!
And yet, the loyalty is only skin-deep
Ask the same people whether they’d think about leaving and the picture changes. Nearly three quarters (72%) admit they’d at least consider switching banks in the next six months.
So, what would it take? And it’s not what you’d expect. Forget the interest rate. Six in ten (61%) said simply… cashback, perks and freebies would be enough to turn their heads, compared with just 32% who’d be swayed by a better rate. Free stuff beats all by almost two to one.
App attack
It’s not just accounts we’re collecting. Almost half of us have two or three finance apps on our phones, and one in five have four to six or more, covering everything from everyday banking to investments. Four in five (80%) have more than one bank account, most commonly just to keep on top of bills (41%).
We may be loyal, but we’re hedging our bets and there’s an app for everything these days.
It’s my money, honey…
Interestingly, unlike the loyalty we reserve for our banks (unless a freebie comes along), it’s a different story when digging into couples’ finances. A quarter (25%) of those in relationships keep their finances completely separate from their partner, not even sharing so much as a joint account for the weekly shop. Nearly four in ten couples go for a halfway house, mixing joint and separate accounts rather than fully merging their money. Only one in five (20%) go “all in” and share absolutely everything. Now that’s modern love!
Who do we trust with our money?
When it comes to advice, we stick with the old guard. Sixty-three per cent trust their bank or an adviser, while only 4% trust AI and a mere 1% trust a finfluencer. Quite refreshing!
If there’s one lesson to be learned by our banks it’s that loyalty isn’t about staying, it’s about not having found a reason to leave yet. Take stock.