A new survey conducted by Morning Consult for the American Bankers Association (ABA) reveals trends and preferences among consumers when it comes to banking.
Among the highlights, the survey found that U.S. consumers support cannabis banking, as 66 percent support Congress passing legislation that allows cannabis businesses to access banking services in states where cannabis is legal. Only 16 percent were opposed to it.
“Americans firmly believe that now is the time to resolve the ongoing conflict between state and federal law to allow banks to serve legal cannabis and cannabis-related businesses,” ABA President and CEO Rob Nichols said. “We urge Congress to pass the SAFE Banking Act this year to enhance public safety in the 38 states where cannabis is legal in some form.”
Also, the survey showed strong support for bank overdraft programs. Specifically, 89 percent said they find their bank’s overdraft protection valuable, while 82 percent who have paid an overdraft fee in the past year were glad their bank covered their overdraft payment. Also, 64 percent of consumers think it’s reasonable for banks to charge a fee for an overdraft, while 76 percent view overdraft fees as reasonable when large payments like mortgages or rent payments are covered and paid on time.
“Consumers continue to tell us that they like overdraft protection and that they believe banks offer it at a reasonable cost,” Nichols said. “For those who prefer not to have overdraft protection, banks across the country continue to offer those options, such as simple and easy-to-use Bank On-certified accounts featuring low costs and no overdraft fees.”
In addition, the survey provided insight into how consumers view banks compared with financial technology, or fintech, companies. About 72 percent of consumers said they would prefer that banks deliver their banking services in the future rather than the federal government or non-bank, non-government entities such as fintech and crypto firms. About 73 percent of adults care if the business that handles their finances is regulated like a bank, while 86 percent agree that any business providing bank-like services to consumers should have to comply with the same rules and regulations that banks do.
“While fintech companies may offer many worthwhile innovations, it’s clear that most Americans still prefer to have a regulated bank handle their financial affairs,” Nichols said. “Consumers also want any company that offers financial services to be held to the same rigorous standards as banks in order to ensure their money and data are secure.”
It also found that 48 percent of those surveyed say credit unions should pay federal taxes just like banks, while 18 percent do not support that. Also, 54 percent believe that credit unions should, like banks, be subject to community reinvestment reporting requirements that quantify their impact on all segments of their communities, while 15 percent don’t believe that.
This survey is the latest in a series conducted for ABA gauging U.S. consumers’ preferences and opinions regarding banks and their services.