Winning with Savers Today
Innovations for Competitive Advantage as COVID-19 Changes Financial Behaviors
Order Report - Winning with Savers Today : Innovations for Competitive Advantage as COVID-19 Changes Financial Behaviors
Overview
COVID-19 has resulted in increased financial actions by consumers. Savings is on the top of the list for many with one in 5 households creating an emergency fund for the first time. This report looks at who is taking action, what they are doing, and the goals for the various segments of savers. We have classified savers into five segments, beyond the traditional age-based categories, that combine behavior, attitudes and household finances. As savings spike in an increasing number of households, the Saver Spectrum segmentation reveals interesting competitive dynamics and which firms are best positioned to capture share of wallet.
The new 62 page report features 53 exhibits. See table of contents and sample pages below.
Key Findings
- Gen X, Millennials and New Generation have been much more active with financial responses to COVID-19 than Silents and Boomers, sometimes taking ”flurries” of multiple actions
- Saving more is the most common overall action in response to COVID-19, as all households shore up liquidity, especially those bracing for work disruptions
- Consumers direct most of their saving to opposite ends of the liquidity spectrum, since account types in between bank savings and long-term retirement are not widely held
- As savings spike in an increasing number of households while others struggle, the Saver Spectrum segmentation reveals interesting competitive dynamics with banks best positioned for “Aspiring Savers,” while Fidelity and Bank of America Merrill are strongest with “Big Savers.
- While Big Savers are the most valuable customers today, Aspiring Savers-High Potential are looking to make changes in their financial lives right now and could be valuable over the long haul, but they require a different approach
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Sample Pages
Table of Contents
Methodology
Key Findings & Implications
Favorite Statistics
Related Research
Key Finding 1: Gen X, Millennials and New Generation have been much more active with financial responses to COVID-19 than Silents and Boomers, sometimes taking ”flurries” of multiple actions.
1.1: Number of Financial Actions Taken: 2014-2019
7
1.2: Number of Financial Actions Taken (2014-2019) and Financial Responses During COVID-19 (2020)
8
1.3: Number of Financial Responses During COVID-19, by Generation: 2020
9
1.4: Number of Financial Responses During COVID-19, by COVID-19 Impact on Household Employment: 2020
10
1.5: High Action-taking During COVID-19 (7+ Actions): by Generation by COVID-19 Impact on Household Employment, 2020
11
1.6: Number of Financial Responses During COVID-19 by Impact of Remote Learning on Employment: 2020
12
1.7: Number of Financial Responses During COVID-19, by Chance Job Will Be Eliminated Due to COVID, by Generation
13
1.8: High Action-taking During COVID-19 (7+ Actions): by Chance Job Will be Eliminated Due to COVID, by Generation: 2020
14
1.9: Number of Financial Responses During COVID-19, by Generation: 2020
15
Key Finding 2: Saving more is the most common overall action in response to COVID-19, as all households shore up liquidity, especially those bracing for work disruptions
2.1: Financial Responses During COVID-19, “Have taken this action”: National, 2020
16
2.2: Financial Responses During COVID-19, “Have taken this action”: National, 2020
17
2.3: Financial Responses During COVID-19, “Have taken this action”: Silent & Millennials, 2020
18
2.4: Financial Responses During COVID-19, “Have taken this action”: by COVID Impact on Household Employment, 2020
19
2.5: Financial Responses During COVID-19, “Have taken this action”: by Impact of COVID Remote Learning on Employment: 2020
20
2.6: Financial Responses During COVID-19, “Have taken this action”: by Chance Job Will be Eliminated Due to COVID, 2020
21
Key Finding 3: Consumers direct most of their saving to opposite ends of the liquidity spectrum, since account types in between bank savings and long-term retirement are not widely held
3.1: Average Household Saving Allocation by Account Type: National, 2020
22
3.2: Average Household Saving Allocation by Account Type: National, 2020 vs. 2019
23
3.3: Liquidity Spectrum
24
3.4: Average Household Saving Allocation by Account Type: by Income Ranges, 2020
25
3.5: Average Household Saving Allocation by Account Type: by Experience with Investing, 2020
26
3.6: Average Household Saving Allocation by Account Type: Income $120K+, by Use of Financial Professionals, 2020
27
3.7: Average Household Saving Allocation by Account Type: by Generation, 2020
28
3.8: Account Type Ownership Rates: by Generation, 2020
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3.9: Taxable Brokerage Account Ownership Rate: by Investable Asset Groups Within Each Generation, 2020
30
3.10: Online Trading Account Ownership: by Generation, by Year
31
3.11: Online Trading Frequency: by Generation, by Year
32
Key Finding 4: As savings spike in an increasing number of households while others struggle, the Saver Spectrum segmentation reveals interesting competitive dynamics with banks best positioned for “Aspiring Savers,” while Fidelity and Bank of America Merrill are strongest with “Big Savers”
4.1: Expected Annual Household Saving Rate: 2012-2020
33
4.2: Expected Annual Household Saving Rate, by Generation: 2020
34
4.3: Expected Annual Household Saving Dollars, by Generation: 2012-2020
35
4.4: Expected Annual Household Saving Rate, by Annual Income Ranges: 2020
36
4.5: Saver Spectrum Segmentation, 2020
37
4.6: “Reach” into National Households: 2020
38
4.7: Reach into Big Savers: 2020
39
4.8: Reach into Aspiring Savers-High Potential: 2020
40
4.9: Top 5 Stores With Highest “Reach” into Each Saver Spectrum Segments: 2020
41
4.10: Composition of Customer Base: by Saver Spectrum Segmentation, 2020
42
4.11: Reach by Saver Spectrum Segments: 2020
43
Key Finding 5: While Big Savers are the most valuable customers today, Aspiring Savers-High Potential are looking to make changes in their financial lives right now and could be valuable over the long haul, but they require a different approach
5.1: Household Investable Assets by Saver Spectrum Segments: 2020
44
5.2: Expected Annual Household Saving Rate, by Saver Spectrum Segments: 2020
45
5.3: Selected Financial Responses During COVID - “Have taken this action”: by Saver Spectrum Segments, 2020
46
5.4: Very High Trust: Trust Levels of 9 -10, by Saver Spectrum Segments, By Year
47
5.5: Agreement with Attitude “The COVID-19 crisis has changed my attitudes towards saving and investing”: Levels of Agreement on a 10-Point Scale, by Saver Spectrum Segments, 2020
48
5.6: Selected Financial Responses During COVID - “Planning/considering this shortly”: by Saver Spectrum Segments, 2020
49
5.7: Perception of Experience with Investing, All Experience Levels: by Saver Spectrum Segments, 2020
50
5.8: Average Asset Allocation by Saver Spectrum Segments: 2020
51
5.9: Feelings about Financial Future, All Anxiety Levels: by Saver Spectrum Segments, 2020
52
5.10: Select Concerns About Issues, High Concern (Top 2 on 10-Point scale): by Saver Spectrum Segments, 2020
53
5.11: Saving & Investing Goals: All Goals, by Saver Spectrum Segments, 2020
54
5.12: Peak Accumulator Behaviors: by Saver Spectrum Segments, 2020
55
5.13: Difficulty with Financial Task - Allocating Savings, by Saver Spectrum Segments: by Year
56
5.14: Agreement with Attitude ”See Value in Paying for Professional Advice”: by Saver Spectrum Segments, by Year
57
5.15: Agreement with Attitude ”I'd prefer one product that combines different investments to accomplish a goal, over me or an advisor assembling a portfolio of many component investments”: by Saver Spectrum Segments, by Year
58
5.16: Importance of Selected Wants from Firm: Big Savers vs. Aspiring Savers-High Potential: 2020
59
Data Dictionary
60
Appendix
61
Glossary
62
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