The findings: MX Technologies recently surveyed 1,000 US consumers to study what drives banking customer retention and attrition. Here are the most compelling takeaways from its “Cheat Codes to Win and Retain Customers” report.:
- Better rates drive direct deposit switches. Forty-two percent of respondents (the most of any category) cited higher interest rates as the key reason they’d move their direct deposits—-a key factor in primacy—to another financial institution (FI). That’s followed by fraud concerns (15%) and privacy concerns (13%).This means FIs with competitive rates must focus their marketing on how their products help customers save money and meet their financial goals faster. FIs that don’t keep up with competitors’ rates may risk some attrition if they can’t make a compelling case with other offerings.
- Poor mobile experiences hinder customer engagement. Sixty-seven percent of respondents would stop using an FI’s mobile app if the experience changed or got worse. And 51% have closed or switched accounts because of it. In order to stand out, FIs should consider offering the most in-demand mobile features listed in our benchmark report.
- Customers are consolidating their accounts. Back in 2019, Javelin Research found that the average US consumer had 5.3 banking accounts, but this is changing. MX’s 2025 report found that 61% of consumers have consolidated their financial products to one or two accounts—down from nearly 40% having between three and five accounts just two years ago. They’re likely moving to apps where they can accomplish important banking tasks and have the most comprehensive view of their financial health all in one place.
- Big life changes prompt new account openings: The top reasons customers open new accounts are moving (48%), starting a new job (43%), purchasing a home (24%), getting married (22%), and getting divorced (16%). This points to the importance of FIs being able to predict as many life-stage changes as possible. Remember: We recently covered how agentic AI can help FIs anticipate such changes.
Our take: The MX Technologies report underscores that consumers are highly motivated by value, convenience, and a seamless digital experience. In addition, they know what they want for their finances and are willing to look to competitors to get it.
To win and retain customers, FIs should proactively use data to anticipate customer needs at key life stages and offer relevant products before those moments arrive.