Press release

Swiss banks in the field of tension between different generational customer needs

• Expectations towards banks increase with customer age. Older customers are more informed about banking and financial matters than younger customers.
• Use of online and mobile banking is widespread. The older generation has the highest usage rate.
• Lower fees and more proactivity are demanded by customers across all age groups.
• Sustainable banking is particularly important for older customers. However, the majority of customers is not willing to pay more for this.

Zurich, 3 April 2024. The needs of bank customers are changing. Implement Consulting Group has conducted a representative study in Switzerland to examine the needs of bank customers across generations. Three age groups were surveyed: 18 to 30-year-olds, 31 to 54-year-olds, and those over 55. The study focused on topics such as bank satisfaction, digitalization, advisory services, and sustainability.

The study shows that Swiss bank customers are predominantly very satisfied with their main bank and remain loyal to it for a long time. It was also noted that the demands on banks increase with the age of the customers. 

Swiss bank customers are generally satisfied – Younger ones have fewer banking relationships and are less informed about fees

The vast majority (84%) of Swiss bank customers are satisfied or even highly satisfied with their main bank, and over 90% of the respondents would recommend their bank without hesitation. Additionally, customers are extremely loyal: 63% of the surveyed customers have been with their bank for over ten years.

Differences emerge among respondents concerning the number of banking relationships. With 51%, half of the younger generation are customers of only one bank. In comparison, 62% of the middle-age group and 68% of the over 55s have more than one banking relationship. The reason for this could be the increasing need for differentiated banking products over time such as mortgages, retirement plans, or investment products, for which customers choose the most suitable bank for their needs.

The study also found that younger customers are less well informed about banking matters. For instance, 22% of the younger customers are not aware of their banking fees, compared to just 9% in the middle-aged group.

Digitalization of banking services continues to grow – Older generations with the highest usage rate of digital channels

The willingness to use purely digital banks is increasing, especially among the younger generation. However, currently only 6-9% across all age groups are customers of a purely digital bank; however, there is a clear shift towards usage of digital channels, particularly for online and mobile banking (with about 80% usage across all age groups).

The stereotype that older individuals are less digitally inclined is not supported by the study. On the contrary, the group over 55 shows the highest usage rate of online channels at 83%. Despite the pandemic, virtual meetings are still not widely desired and thus not widespread. Only 11% of customers had their last advisory meeting through a virtual channel.

While the younger generation is in principle open to using chatbots, this interaction channel finds little acceptance among the older generation (85% reject it). “This shows that the migration of customers from branches to digital interaction channels continues to be a key challenge for banks in implementing their digital strategy,” says Kolja Dutkowski, partner in banking at Implement Consulting Group.

Customers demand more proactivity and personalized offers – Willingness to share personal data is high

Demand for personalized advisory offers is high across all age groups (59-68%), particularly regarding investment and pension planning products. The majority of customers would also permit their bank to use personal data for creating personalized offers. However, younger customers are more hesitant to share personal data (56% approval versus 71% among older customers). “This opens up numerous opportunities for banks to use personal data to strengthen customer loyalty and make communication more personalized, as long as they comply with the regulatory requirements for data use,” says Kolja Dutkowski.

Moreover, the era of postal mail is ending. Only 12% of customers wish to be informed by their bank via letter, while the majority prefers emails or online messages (39-47% across the various age groups).

Sustainability, but please without costs

Almost 40% of bank customers indicate that their bank's commitment to sustainability is important or very important to them. However, only about 30% of customers are willing to pay a premium for products with a particularly green sustainability profile. Older customers place slightly more importance (42%) on sustainability than younger ones (33%), at least when it comes to sustainability in relation to their bank. “The transition to sustainability is currently still a balancing act for banks in which sustainable products and services have to be weighed up against the price sensitivity that customers often still have,” explains Kolja Dutkowski.

Methodology of the study

The representative study is based on a survey of 1020 bank customers in Switzerland. The online survey was conducted in January 2024.

About Implement

Implement was founded in Denmark and has branches in Copenhagen, Aarhus, Stockholm, Malmo, Gothenburg, Oslo, Munich, Hamburg, Dusseldorf, Zurich, and Raleigh. Implement has more than 1500 consultants worldwide working on a wide range of topics. Implement offers a wide range of services including strategy development, organizational design, change management, digital transformation, operational excellence, and corporate sustainability. Implement believes that significant organizational impact leads to a meaningful impact on humanity. Implement's goal is to catalyze real transformations by bringing analytical skills, functional expertise, and human insights together in a way that unfolds impact.

Contact:

Implement Consulting Group AG
Gutenbergstrasse 9, 8002 Zurich

Kolja Dutkowski
Partner in Financial Services
Study head
+41 76 376 83 90
kodu@implement.swiss

Thomas Lanz
Partner in Business Operations
tlan@implement.swiss

Catharina Samira Sänger
Senior Consultant in Business Operations
casa@implement.swiss