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Non-Prime Customers Are More Likely To Use Online-Only Banks, Study Finds

Grace NotobyGrace Noto
April 24, 2018
in Payments
Reading Time: 1 min read
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Digital banking is bringing more consumers than ever into the fold of the financial ecosystem, especially as branches, and other physical products, wane in necessity: take non-prime Americans, for example.

A group that often feels underserved by traditional banks, non-prime consumers are six times more likely to bank at an online-only financial institution compared with prime customers, according to a study by Elevate’s Center for the New Middle Class, released today.

This group is also less likely to report satisfaction with their banks (only 47% of this group agreed with the assertion that their bank “cares” about their financial progress), and does not feel that the products offered by banks were designed with their needs in mind. Only 35% of non-prime customers agreed that their bank designed loan products for their needs, by example.

While non-prime customers are less likely to use a traditional financial institution — 65% of this group uses a traditional bank for their daily needs, the study of just over 1,000 respondents found, compared to 75% of prime customers — neither group is expressly likely to turn instead to credit unions, with only 19% of each group choosing that category.

Though the range can vary across credit bureaus, prime customers have credit scores that typically fall between 680-740 (this range is for Experian customers), while non-prime customers occupy the next tier down.

Take a look at the full survey here.

Tags: credit cardsDataBankElevateExperiannonprimePremiumprime
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