Online reviews have become a crucial factor in shaping consumer decisions across various industries, including the banking sector. The influence of these crowdsourced opinions is undeniable, as consumers increasingly seek transparency and authenticity in their choices. In research exclusive to the Financial Brand conducted by Rivel Banking Research in Q2 2024, among a national sample of banking consumers, 78% of banking consumers consistently utilize online reviews when they are deciding on their new home for a bank account. This staggering statistic underscores the power of online reviews in swaying consumer behavior and highlights the need for financial institutions to prioritize their online reputation management strategies. As consumers navigate the complexities of selecting a banking partner, they turn to the collective wisdom of their peers, seeking insights into everything—from customer service quality to account fees and digital banking experiences. Digital Word of Mouth A generational divide is taking place in not only banking activity, but marketing. It’s no surprise that previous research has shown that younger generations have flocked to their mobile app for their everyday banking. However, this digital affinity extends beyond just app usage—younger consumers are also more inclined to rely heavily on online reviews when selecting financial institutions. Millennials and Gen Z consumers, having grown up in a world saturated with online information, have developed the keen ability to sift through vast amounts of user-generated content and place significant trust in the collective experiences shared by their peers. According to Rivel’s research from Q2 2024, 88% of both generational groups rely heavily on online reviews when evaluating a new financial institution or banking product. Only 78% of Gen X consumers and 61% of Baby Boomers have the same level of trust and usage. Unlike older generations who may prioritize personal experiences, recommendations from 1 COREY WRINN, RIVEL BANKING RESEARCH Why Online Reviews Matter for Banking Decisions HOMEWORK DOING YOUR Why ask one person for a recommendation when you have the wisdom of millions at your fingertips? 11 Colorado Banker
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