After a period of relative stability, the primary bank switching rate increased by more than 40 percent in late 2013, with 60 percent of smartphone/tablet users reporting mobile banking capabilities as being either "important" or "extremely important" in their decision to switch.
After relatively stable switching rates since the financial crisis, the number of consumers switching primary banks jumped from 7.1% in the first half of 2013 to 10% in the fourth quarter of 2013 according to the "Mobile Financial Services Tracking Study" from AlixPartners. This is the highest rate of switching since the end of 2008.
The highest incidence of primary bank switching was evident among millennials, where the annual switch rate approached 20 percent. The rate of switching quickly drops for older segments of the population, with baby boomers and seniors switching primary banks at low single figure annual rates.
 |
| % Who Switch Primary Bank in Past Year Source: AlixPartners (March, 2014) |
 |
| % Who Switched Primary Banks in Past Year by Age Source: AlixPartners (March, 2014) |
Among younger consumers, technology and innovation was of greatest importance, with the reasons for switching primary banks including:
- "My previous bank didn't offer the level of technology/innovation that I wanted"
- "My previous bank didn't offer the online services that I needed"
- "My previous bank didn't offer the mobile services that I needed"
For older consumers, the primary reasons for switching were because of a bad customer experience or because of a move, new job, etc.
