Every financial service provider knows their customers aren’t all the same. Some still prefer face-to-face conversations at their local branch, while others would never dream of stepping foot in one. That’s why customer segmentation in banking is so powerful — it helps leaders understand who they serve and how to better meet their needs.
Based on a recent market research study, we identified four distinct banking customer segments:
Each segment represents unique attitudes, behaviors, and preferences that banks and credit unions can use to shape products, marketing, and customer experience.
Below we break down each segment and share practical ways to market and sell to them.
Explore the data, trends, and takeaways shaping the future of finance.
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Conventional Consumers lean heavily on tradition and personal relationships. They want a well-known, reputable financial institution and believe great customer service is non-negotiable. This group is the most likely to visit a branch in person and values the human element of banking.
With over half belonging to the Baby Boomer generation, many are focused on saving for retirement and financial security. They’re comfortable with desktop banking but avoid mobile apps, and they’re unlikely to be early adopters of new technology.
Banks and credit unions can build trust by highlighting stability, personalized service, and long-standing community presence. Campaigns should emphasize face-to-face support, retirement planning, and safe, low-risk products. Digital tools are still important, but only if they feel reliable and easy to use.
Straightforward Savers take a practical, no-frills approach to banking. Most of their activities revolve around simple deposits and withdrawals, and they prefer to keep all accounts under one roof.
Cost savings are critical — this group actively looks for low fees and competitive loan rates. With the lowest average household income of all segments, many live alone and prioritize stretching their dollars. Straightforward Savers are mostly Gen X and Baby Boomers who resist unnecessary change, especially when it comes to banking technology.
Messaging should focus on value and simplicity. Highlight low fees, transparent loan products, and straightforward account structures. Since word-of-mouth is a top source of new banking products for this segment, referral programs or customer testimonials can be highly effective.
👉 Market research can uncover the exact cost-saving features this group is most likely to respond to, helping you position products in a way that resonates. Check out these top market research options for banks and credit unions to learn what we recommend most.
Mobile Minimalists are the ultimate “do-it-yourself” bankers. They prefer to manage all financial tasks through their smartphone, from deposits to transfers, and they rarely interact with branch representatives.
This group skews younger (Gen X and Millennials) and values convenience above all else. They don’t view banking as a relationship but rather as a utility that should be fast, easy, and always accessible. Because of this, they’re more likely than other groups to switch institutions if a better digital option becomes available.
Invest in mobile-first experiences. Emphasize the speed, security, and ease of your app, and market features like mobile check deposit, instant transfers, or AI-powered financial tools. Avoid leaning on branch services or community involvement, as these aren’t priorities for this group.
Innovative Investors are future-focused and open to new ideas. They have the highest average household income and more discretionary funds, giving them the flexibility to save for tomorrow while enjoying life today.
This group, made up largely of Millennials, embraces fintech and is eager to try out new technology and features. Over half have used AI tools to help manage their finances, whether through virtual assistants or personalized financial advice. Physical branches and community involvement matter far less to them than seamless digital access.
Position your institution as forward-thinking and digitally advanced. Showcase new features, fintech partnerships, and investment tools that help customers grow their money. Video content, online education, and YouTube campaigns can also be effective, as this segment actively uses digital resources to compare products.
In May 2025, Drive Research fielded an online survey with 1,000 US adults who currently hold a banking account. The survey results were used to assess the current landscape of banking customers and identify underlying consumer segments with unique preferences and behaviors. A summary of 2025 banking trends and statistics was also published to share implications for those in the financial industry.
Looking to dive into the full report on your own? Download a free copy here!
Understanding customer segments helps financial institutions move beyond a one-size-fits-all approach. Each of these groups represents different expectations and opportunities, from retirees who want personalized service to young professionals looking for the newest tech.
The takeaway? Banks and credit unions that invest in customer research can deliver experiences that feel relevant and personalized — and in turn, win loyalty in a competitive market.
Ready to learn which banking segments matter most to your customers?
Contact our financial services market research company today to explore a custom study for your institution.
