The consumer banking industry has long operated on a quiet premise: once you had a customer, you more or less kept them for life. Direct deposits, automatic payments, linked accounts and the general hassle of moving money gave banks a built-in retention advantage. For many consumers, staying put was less a sign of loyalty than a response to friction.
That premise is no longer holding true
Raisin’s 2026 State of Consumer Banking Report found that 65% of Americans have switched banks at least once, and nearly one-third have switched multiple times.
The rise of fintechs and digital tools has changed what customers expect from their financial institutions. Comparing rates, opening accounts, and moving money no longer feel like major hurdles, weakening the friction that once kept consumers in place. But easier access does not mean every consumer is acting on the information available to them. Raisin’s report found that only 7% of Americans are currently earning what would be considered a competitive savings rate in today’s market, while 31% don’t know their savings interest rate at all. Among Baby Boomers, that figure rises to 38%. In a high-rate environment, not knowing what your cash is earning can carry a real financial cost.
For financial institutions, this creates both a risk and an opportunity: consumers who understand the value gap may be more willing to leave, while institutions that provide clearer information, better rates and more transparent guidance have a better chance of earning their trust.
The hybrid expectation
The narrative around digital transformation has often suggested that bank branches are becoming obsolete. But while Americans increasingly prefer the convenience of an app for day-to-day banking, digital tools cannot fully replace the community connection and personalised support a local branch can provide.
As e-commerce expanded, physical retail did not simply disappear; it had to evolve and demonstrate the value of its physical footprint through experience and convenience. Banks are now navigating a similar shift.
The institutions best positioned for the future are those investing in a high-quality digital experience while using branches for the moments when trust and guidance matter most — such as navigating complex personal financial decisions, planning for major life events, or resolving sensitive issues. Success won’t come from choosing between digital and physical, but from creating a model where each channel complements the other.
