Academic journal article ABA Banking Journal

Banks the No. 1 Primary Institution

Academic journal article ABA Banking Journal

Banks the No. 1 Primary Institution

Article excerpt

One of the strongest findings for banks is the fact that, of people who use them, three quarters regard their bank as their primary financial institution. True, this number slipped from 80% to 76% since 1994, but the researchers do not consider that a statistically significant decline.

Of the one in four bank customers who consider another type of financial institution to be their primary institution, 12% say it is a credit union, up slightly from 1994. (The percentage relying primarily on a credit union is higher for bank customer respondents between the ages of 35 and 54, and those with incomes between $25,000 and $74,999.) Savings banks and savings and loans each account for about 5% in this tally.

Overall, older (55 and up) and higher income bank customers ($75,000 or more in annual household income) are more likely to use some other type of financial institution as their primary institution, whereas consumers with annual household incomes of less than $25,000 are more likely to use banks as their primary institution.

The researchers probed for reasons why bank users would use a nonbank as their primary financial institution. …

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