Consumer Banking and Borrowing: U.S. Market Trends

Industry Reports, Global

Report Overview

Special offer: now 20% off original full report price

Consumer Banking and Borrowing: U.S. Market Trends

Consumer banking and borrowing trends represent a host of riddles in need of solving. While checking account usage will likely continue to decline, the primary checking account remains the foundation of consumers’ banking relationships. Multi-channel banking is reshaping the consumer relationships with financial institutions, and yet branch banking obituaries are entirely premature: Millennial and Silent Generation alike see great value in them. Generational differences aside, the primary banking relationship brings great rewards, but it can be further strengthened. High savings rates, low financial security, low delinquency rates, and sworn aversion to adding to debt loads spell consumer loan stagnation, and yet consumer loans outstanding have long been hitting new highs. Emerging and alternative products and services are making an impact in the marketplace, and yet major banking institutions will continue to dominate the consumer banking landscape for years to come.

To help market participants navigate these riddles and succeed years down the road, Consumer Banking and Borrowing: U.S. Market Trends provides trend-forward analysis of the consumer banking and borrowing market, focusing on commercial banks, credit unions, and savings institutions, with supplemental analysis of finance companies, as well as emerging banking alternatives. In doing so, the report emphasizes 2007-2016 trend patterns that highlight consumer behavior, attitudes and usage of banking and borrowing products and services; and related deposit, asset and loan trends.

Consumer Banking and Borrowing: U.S. Market Trends Does The Following:

Assesses the consumer’s future prospects, blending economic forecasting, employment trend analysis and HH income shifts in affluence; consumer attitudes toward debt, money management trends and savings trends; and consumer debt ratio, delinquency rate and charge-off trends.
Provides direction on the importance of checking accounts and primary checking accounts to consumers, with analysis of factors important to opening a bank account; assesses banking institution consolidation trends; and banking institution asset, deposit and loan growth trends; and discusses how technology impacts consumer decisions that curtail banking revenue.
Analyzes consumer banking revenue streams and amounts for three major banking institutions with varying product emphasis, and discusses consumer security and trust concerns.
Discusses the primary banking relationship, including identifying primary banking choices among major banking institutions, assessing factors relevant to choosing a primary bank, primary bank relationship length, and number of banking institutions used.
Studies factors that can strengthen the primary banking relationship; the degree to which major banking institutions cross-sell credit cards to bank users and the degree to which they cross-sell banking services to credit card users.
Studies the impact of mobile banking, including the importance of banking apps to the account opening decision and shifts in bank channel usage.
Details checking and savings account usage trends, emphasizing age, generation, and HH income shifts in usage; banking account and card usage, by type of account and card; and checking account usage, by bank channel and emerging account types.
Assesses consumer deposits and deposit service charges, providing a consumer checking and savings deposit market size; a breakdown of consumer service charges by type; and analysis of banking institutions by total consumer deposits, by consumer deposit fees, by highest share of consumer deposit fees, and by the ratio of overdraft fees to deposits.

Table of Contents

Executive Summary
- Report Scope
- Report Summary
  - Trends shaping consumer banking
  - The consumer banking relationship
  - Consumer account ownership and service charge trends
  - Consumer loan trends

Trends Shaping Consumer Banking
- The consumer
  - Economic forecast: slow going ahead
  - HH income trends shape a growing affluent class and a shrinking middle class
    - Table | Change in Household Number and Share, by Income Segment, 2007-2015
  - Employment challenges persist
- Consumer savings, debt and money management trends
  - Attitudes toward debt
    - Table | Attitudes Toward Debt, 2007-2016
    - Table | Effect of Recession on Taking on Debt, 2016
  - Money management trends
    - Table | Attitudes Toward Money Management, 2007-2016
  - Consumer debt ratios
  - Savings trends
    - Table | Personal Disposable Income, Personal Saving and Personal Saving Rate, 2007-2015
  - Consumer credit trends: Ominous growth
  - Non-revolving credit is the culprit
- The bank account
  - Losing ground over time
  - But primary checking account remains foundation of consumer banking
    - Table | Checking Account Holders Who Have a Primary Checking Account, 2016
    - Table | Primary Checking Account Holders Who Get Most Banking Needs Met by Primary Checking Account Provider
  - Factors important to opening a bank account
- The financial institution
  - Number of institutions
  - Branch and ATM reach
    - Table | Commercial Banks, Savings Institutions and Credit Unions: Number of Institutions, Number, Annual Cha
  - Assets and deposits
    - Table | Commercial Banks, Savings Institutions and Credit Unions: Total Assets, Amount, Annual Change and Sh
    - Table | Commercial Banks, Savings Institutions and Credit Unions: Domestic Deposits, Amount, Annual Change a
  - Loans to individuals
    - Table | Loans to Individuals: Commercial Banks, Savings Institutions and Credit Unions, by Amount, Annual Ch
  - Consumer delinquency and charge-off rates
    - Table | Consumer Loan Delinquency Rates, By Loan Type, 2007-2016
    - Table | Consumer Loan Charge-Off Rates, By Loan Type, 2007-2016
- The technology
  - Table | Effect of Technology on Financial Management and Financial Services Fees, by Demographic, 2016
- The revenue
  - Tale of the tape: JPMorgan Chase
  - Tale of the tape: Capital One
  - Tale of the tape: American Express
    - Table | Consumer Banking Loan and Revenue Analysis, by Product Type: American Express, Capital One and JPMor
  - Profitability
- Security
  - Table | Concern about Bank Trust and Credit Card Identity Theft, 2007-2016
  - Adding mobile wrinkles

The Consumer Banking Relationship
- Banking institution usage trends
  - Banks, credit unions and savings & loans
  - Banks, credit unions and savings & loans as primary banking institution
    - Table | Banking Institution Use in Last 12 Months: Any, Primary and Also, by Type of Institution, 2007-2016
    - Table | Banks vs. Credit Unions: Usage as Primary Banking Institution, by Generation/Age, 2007 vs. 2016
    - Table | Banks vs. Credit Unions: Usage as Primary Banking Institution, by HH Income, 2007 vs. 2016
  - A loyalty proxy: banking institution use vs. use as primary banking institution
    - Table | Banking Institution User: Primary Usage Share, by Institution Type, 2007-2016
    - Table | Banking Institution Use vs. Primary Use in Last 12 Months, by Institution, 2016
    - Table | Credit Unions, Savings & Loans and Top Banks: Usage as Primary Bank, by Institution and Generation,
    - Table | Credit Unions, Savings & Loans and Top Banks: Usage as Primary Bank, by Institution and Household In
  - Reasons for choosing primary bank
  - Length of banking history suggests long-term relationships
  - Consumers can count number of institutions used on one hand
    - Table | Number of Financial Institutions Used for Products and Services, 2016
- Strengthening the primary banking relationship
  - Choosing a primary financial services provider
- The credit card connection
  - Bank users, credit card users, and relationship between the two
    - Table | Credit Unions, Savings & Loans and 10 Largest Banks: Usage as Bank in Last 12 Months and Credit Card
    - Table | Credit Unions, Savings & Loans and 10 Largest Banks: Credit Cards Issued and Share of Credit Card Us
    - Table | Credit Unions, Savings & Loans and 10 Largest Banks: Usage as Bank in Last 12 Months and Share Users
- The mobile connection
  - Use of mobile banking continues to rise
  - Mobile at-home access gaining on PC access
    - Table | U.S. Adult Home Internet Use: Desktop via Mobile Phone, 2008-2015
  - Smartphone ubiquity around the corner?
    - Table | U.S. Adult Call Phone and Smartphone Ownership Trends, 2012-2015
  - Shift to mobile commerce
  - And mobile financial service engagement
    - Table | U.S. Adult App Use and Banking/Finance App Use, 2015
  - Mobile apps a factor influencing where to open bank account
    - Table | Important Factors to Opening a Bank Account: Mobile Banking App Attributes, by Demographic, 2016
  - Shifts in banking channel usage
    - Table | Bank of America: Branches, ATMs, Online Banking Accounts and Mobile Bankers, 2011-2015
    - Table | JPMorgan Chase: Branches, ATMs, Online Banking Accounts and Mobile Bankers, 2011-2015
  - PayPal account provides strong checking alternative

Consumer Account Ownership and Service Charge Trends
- Account trends
  - Checking and savings accounts
    - Table | Checking Account and Savings Account Usage, 2007-2016
    - Table | Checking Account Usage, by Generation and Type of Banking Institution, 2007 vs. 2016
    - Table | Percent of Adults with Checking Account, by Generation/Age, 2007, 2010, 2013, 2016
    - Table | Percent of Adults with Checking Account, by HH Income, 2007, 2010, 2013, 2016
  - Banking account and card usage, by type of account and card
  - Checking account, by bank channel
- Consumer deposits and deposit service charges
  - Assets and deposits
    - Table | Commercial Bank Domestic Assets and Deposits: Business-Only Banks vs. Consumer Banks, by All Banks a
    - Table | Commercial Bank Deposits: All Deposits vs. Consumer Checking/Savings Deposits, 2015
  - Consumer deposit accounts
    - Table | Bank Deposits at Consumer Banks: Consumer Deposits vs. Business Deposits, Checking vs. Savings Accou
  - Consumer deposit account service charges
    - Table | Bank Deposit Account Service Charges: Business-Only Banks vs. Consumer Banks, by All Banks and $1 Bi
    - Table | Consumer Deposit Account Service Charges, by Type, 2015
    - Table | Consumer Overdraft Service Charges as Share of Consumer Transaction Account Deposits: $1+ Billion As
  - Top banks serving consumers: a comparative analysis
    - Table | Top 40 Commercial Banks, by Consumer Deposits: Savings and Checking Accounts, 2015
    - Table | Top 40 Commercial Banks, by Consumer Deposit Account Service Charges, 2015
    - Table | Top 10 Commercial Banks: Share of Consumer Deposit Account Service Charges, by Type, 2015
    - Table | Top 10 Commercial Banks, by Ratio of Consumer Deposit Account Overdraft Charges to Consumer Checking

Consumer Loan Trends
- Loan usage trends, by loan type
  - Table | Loans Have/Use, By Type of Loan, 2007-2016
- Loan usage trends, by type of banking institution
  - Table | Any Loan Have/Use, By Type of Banking Institution, 2007-2016
- Automobile loan trends
  - Table | Financing Company Automobile Loans: Interest Rate, Amount Financed and Maturity, Used and New Cars,
  - Credit unions putting the pedal to the metal
    - Table | Automobile Loans Outstanding: Commercial Banks/Savings Institutions, Credit Unions and Financing Com
    - Table | Loans for New Automobile: Share, by HH Income and Generation, 2010-2016
- Credit card loan trends
  - Table | Credit Card Loans Outstanding: Commercial Banks, Savings, Institutions and Credit Unions, 2010-2015
  - Card usage trends, by age and HH income
    - Table | Credit Card Usage Penetration and Usage Share, by Generation/Age, 2007-2016
    - Table | Credit Card Usage Penetration and Usage Share, by HH Income, 2007-2016
  - Credit card bill payment trends generally consistent
    - Table | MasterCard and Visa Credit Card Usage Penetration and Portion of Monthly Bill Paid, 2010-2016
  - Attitudes toward credit card debt
    - Table | Attitudes Toward Credit Card Debt and Paying Credit Card Balance, by Demographic, 2016
- Personal loan trends
- Student loans: the straw that will break the camel's back
  - An unsettling state of affairs
    - Table | Adults with Student Loans, by Demographic, 2016
  - The consequences
- Mortgage loan trends
  - Table | Real Estate Loans Outstanding, Commercial Banks, Credit Unions and Financing Companies, 2010-2015

Appendix
- Methodology
  - Consumer survey methodology
  - Report table interpretation
  - Generations
  - Terms and definitions

Purchase Options

Access Options

Membership

Complementary Access to Report Including:

consultative access to our analyst
unlimited downloads to reports
global market research in 9 languages
customized PPT presentations
passwords for your teams available
and more...

Become a Member

Purchase This Report

Select your license:

Full Report Price Single User $3,800.00
Departmental Site License Department Wide $5,700.00
Global Site License Corporate Wide $9,500.00

Questions & Assistance

Share This Report

;

Related Reports and Studies

View More

Have unique research needs?

Freedonia Strategic Insights listens intently to your needs and objectives. Then we work diligently to define a service offering to meet them.

Learn About Our Custom Research Services

Stay informed with Freedonia

Receive periodic updates about new market research in areas relevant to your business. Have the convenience of Freedonia research at your fingertips when you need it.