This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

It's Not Easy for Banks to Sell You on New Services

NEW YORK (TheStreet) -- Banks spend tons of money figuring out how you like to spend and save money, especially when it comes to using credit cards and mobile banking, two huge profit center for financial institutions.

The credit card industry will process about $4 trillion in card transactions this year, according to Business Insider, and Albany, N.Y.-based ResearchMoz reports that mobile banking is also flexing its muscles, growing from 480 million U.S. users at the end of 2012 to 1.08 billion by 2016.

Those big numbers are representative of why banks want to know how financial consumers view new savings and payment technologies in the credit card, mobile banking and virtual-wallet consumer financial market segments.

One data analysis firm, Redwood City, Calif.-based Rocket Fuel, thinks it knows more about your banking habits in that regard than you do.

In a study of 750 banking consumers 18 and older who own at least one credit card and who have at least expressed an interest in mobile banking, the firm reveals some interesting viewpoints on banking services and credit card use:

You like mobile banking -- to a point. Rocket Fuel says 59% of Americans have at least one mobile banking app on their smartphone, but mostly it's used for basic tasks such as checking account balances. Far less widely used are money apps such as virtual wallets (7% of Americans use them) and money transfers (15%).

You're not happy about your credit card. The study notes that 35% of adults say they're in the market for a new credit card in the next six months. But people who make $150,000 are 50% more likely to switch credit cards than people who make $50,000 per year.

You make money decisions on weekends. You're much more likely to make a banking decision on a Saturday or a Sunday or late at night. Evidently, Americans need some space away from their workday to make money decisions.

You go for "learn more" language. When banks run ad campaigns on the Web that encourage you to "learn more" (usually, that means clicking onto a separate page where you can sign up for a credit card or mobile banking), you are more likely to change your banking or credit card services. That likely means you want more education, and won't make a decision until you get it -- or think you're getting it.

According to Eric Porres, Rocket Fuel's chief marketing officer, banks and credit card firms are spending $5 billion annually on digital ad campaigns. If they can get you to sign up for a fresh products or services, such as a new credit card, or opt in on mobile banking, they'll consider it money well spent on customers that seem generally a tough sell for new services.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs