Pictures of Growth Strategy Team, Briana, Ebony, and Justin

Pinwheel’s consumer banking sentiment 2025: Our top 3 takeaways for banks and credit unions

Published: April 10, 2025

Image of Pinwheel's consumer banking 2025 report

Pinwheel recently released the findings of its 2025 Nationwide Primacy Study, offering valuable insights into how consumers are choosing and interacting with financial institutions today. The results highlight a shift in consumer expectations and behaviors—and provide clear guidance for banks and credit unions seeking to grow more meaningful, engaged relationships.

Here are our top three key takeaways for banks and credit unions:

1. Branch location is no longer a primary driver

Proximity to a physical branch is no longer the #1 consideration for ANY demographic when choosing a bank in 2025. Checking account features and rates have emerged as the #1 factor for consumers planning to switch banks.

Our take: It’s no longer about the closest branch — it’s about the best fit

For decades, convenience dictated consumer choice—people often selected the nearest branch without exploring the value or features offered. This research indicates that mindset is evolving. Consumers are now comparing institutions based on product quality, digital capabilities, and long-term benefits.

2. Consumers are diversifying their financial relationships

While many consumers still consider a national bank their primary financial institution, a significant portion are also using additional providers. According to the study:

46% use a community bank or credit union
52% use a digital bank (70% of Gen Z)

Our take: Banks and credit unions can win with personalization and innovation

Digital banks are winning big with younger consumers by delivering streamlined experiences, modern features, and strong product differentiation (like Early Direct Deposit) backed by a large investment in advertising. While national banks benefit from brand recognition and scale, they often lack distinctiveness. This presents an opportunity for community banks and credit unions to define their unique value proposition and better serve consumers—especially younger generations—through innovation and personalized engagement.

3. Account switching remains a barrier

Despite consumer interest in improved, modernized products and services, people still dread the process of switching banks. "Clean breaks" are even more challenging, with consumers often getting trapped in cycles of opening new accounts and never fully transitioning. The study found that:

68% of consumers opened an account they never used due to difficulty transferring direct deposits and recurring payments
39% felt overwhelmed by the process of moving recurring payments

Our take: Reducing friction is the key to better onboarding and retention

Acquisition strategies often fall short because the onboarding process is too complex. While some national institutions use cash incentives to encourage account usage, there is a more sustainable solution: reduce friction. By simplifying the steps to switch, especially around direct deposit and payment transfers, institutions can boost engagement, increase account utilization, and improve long-term retention.

The bottom line

Today’s consumers are more discerning and digitally driven than ever before. To remain competitive, banks and credit unions must shift from focusing solely on acquisition to ensuring that new accounts are easy to activate and use. By delivering seamless onboarding experiences and clearly communicating value, community banks and credit unions can earn trust, drive engagement, and build primary relationships that last.

That’s where Digital Onboarding comes in. Talk to us.