What do consumers want from their lenders post-COVID?

The pandemic has upended daily life and the economy, forcing financial institutions to pivot and adjust to new consumer behavior and perspectives. What do consumers want from their banks in the post-COVID era? How can banks build loyalty with two of the fastest-growing consumer segments, Millennials and GenZ?

Zest AI teamed up with the Harris Poll to bring you the 2020 Consumer Credit Survey — based on feedback from 2700 Americans, ages 18-65 — to learn how the pandemic and social unrest is changing consumer behavior and perspectives. ‍

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Key finding — the era of the ethical financial consumer is here

Our research shows that consumers are watching how brands respond to the current economic, social, and pandemic-related crises facing the country—and are changing their buying preferences in response. The ethical financial consumer is here, and they have strong opinions on how financial institutions should change to match their values.

The report revealed:

• 7 out of 10 Americans would switch to a lender with more inclusive practices
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• 59 percent of Americans said they would switch to a lender that increased access to credit for people of color
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• 6 out of 10 Americans would switch to a lender that increased access to credit for women

The poll reflects Americans’ strong preference across the board for more racial and gender equity in loan underwriting. This trend is even more pronounced among Millennials and GenZ. Get the full report to take a deep dive into all of the insights.

AI for Lending? Consumers Say Yes

Consumers also had a lot to say about banks’ technology adoption for faster lending decisions and find new ways to determine creditworthiness. In fact, 51 percent of Americans said they would switch to a financial institution that uses machine learning rather than humans to make loan approvals. And 62 percent of Americans wish there was another way to prove themselves to lenders outside of the standard credit score.

Overall, consumers feel the current credit system is broken and are comfortable with banks using more data sources to assess creditworthiness. ‍

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Seize the opportunity

As consumers demand more inclusive banking and new ways to assess creditworthiness, there is an opportunity for financial institutions to embrace innovative approaches to credit modeling.

Forward-thinking leaders that seize the opportunity can grow faster, broaden their footprint into underserved communities and build loyalty with consumers that want to align with brands that genuinely do good.