Retail banking is under pressure from four directions at once. Deposits are leaving. Fee income is being squeezed by regulatory change. Consumers are spreading their financial lives across multiple providers, and the segments that will define the next decade, Gen Z and small businesses, are being won by someone else first.
What makes this moment particularly difficult is that most banks are misreading what is driving it. 57% of banks believe customers stay because of a long-standing relationship. 55% of consumers say a great mobile app is the reason they chose their primary FI. That gap between what banks believe and what customers experience runs through all four pressure points, and it is where the real risk sits.