Consumers want more behavior insights from financial institutions

Consumers are beginning to grow wary of large banks in the wake of the economic downturn, especially as large institutions begin to impose new fees on once-free banking services.

Consumers are beginning to grow wary of large banks in the wake of the economic downturn, especially as large institutions begin to impose new fees on once-free banking services. The result has driven many consumers to alternative lenders or to demand new services in exchange.

According to a survey released this week by data firm Truaxis, a large majority of consumers - 88 percent - want banks and financial institutions to deliver insights into their spending behavior and to offer actionable financial recommendations. They would also like to understand how their purchasing habits relate to wider market segments.

Additionally, more than three-quarters of bank customers reported they would consider applying for a new bank card if their current institution did not offer loyalty rewards. Another 71 percent of respondents would be more likely to use mobile banking if it offered real-time, location-based offers from top merchants.

"With banking going through significant pressures of regulation, as well as big changes in consumer expectations of their financial providers, financial institutions are looking for ways to drive richer relationships with their consumers and drive engagement via online and mobile channels," said Schwark Satyavolu, co-founder and CEO of Truaxis.

The report comes the same day as a COUNTRY Financial reports showed an increase in Americans' view of their financial security.