BAI has released the key findings for its 2018 BAI Banking Outlook research study. Headquartered in Chicago, BAI is a nonprofit organization that provides research, training, and thought leadership events for the financial services industry. 
Its Banking Outlook uncovers data on customer retention and cross-selling activity, giving a detailed breakdown on industry trends. This quarterly research study consists of a combined total of over 1,200 consumers and financial services leaders from organizations ranging in size from community banks to large mega banks.
The report found that for 2018 and beyond, banks must contend with multiple challenges tied to regulations, legacy systems, disruptive models and technologies, new competitors, and a restive customer base while pursuing new strategies for sustainable growth. 
It also found that Millennials are more likely to open a new account than Gen X or Baby Boomers. The main reason for a customer not opening an account was the inconvenience or time spent going through the process.
The report described Millennials have, on average, more than 70 interactions per month with their main financial service provider, while GenXers have only an average of 60, and Boomers have fewer than 45. However, it found that Millennials express the most frustration with digital channels.
The report also detailed customers that have opened an account as a result of cross-selling processes are less loyal than customers who do not open new account. 60 percent of these customers that have recently been cross-sold are more likely to switch banks in the next two years.
“Our research offers leaders insight into the risk of not understanding their customers’ journey, how NPS data is impacted by cross-selling and what customers expect in order to stay with their main bank,” said Karl Dahlgren, managing director of Research for BAI.
 “Our goal with the most recent installment of the BAI Banking Outlook is to help financial service leaders understand their current customers’ needs and pain points. This fact-based information will enable leaders to identify priorities for improvement and understand how to deepen their valued relationships over time.”

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