The whitepaper was sponsored by PSCU and independently produced by Javelin Strategy & Research. Javelin maintains complete independence in its data collection, findings, and analysis. 
This white paper discusses how the Internet of Things (IoT), connected payments from IoT devices, and new banking technologies, such as biometrics,  are impacting the financial services industry. It also provides a view to the future of banking and how they will create new opportunities and pose potential customer attrition threats to financial institutions (FIs). The paper segments the banking industry into four categories based on where a consumer has his or her primary financial relationship: giant bank, regional bank, community bank and credit union (definitions and survey methodologies described in detail at the end of the paper in the methodology section). 

The consumer data in this report was primarily collected from the following two surveys:

  • A random-sample survey of 3,200 respondents conducted online in October 2016. The overall margin of error is +1.74 percentage points at the 95% confidence level. The margin of error is larger for subsets. The sample is nationally representative of all consumers.
  • A random-sample panel of 3,182 consumers collected online during July 2016. The overall margin of sampling error is +1.74percentage points at the 95% confidence level. The sample is nationally representative of all consumers.

The analysis of financial institutions (FIs) by size was based on where consumers maintain their primary banking relationship. Note that consumers often have multiple relationships with various FIs; however, they can have only one primary relationship. FIs were divided into four categories determined by total deposits as of Dec. 31, 2015, according to rankings by American Banker:

  • Giant national banks: deposits greater than $750 billion (JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup)
  • Large regional banks: $30 billion to $750 billion in deposits
  • Small regional or community banks: less than $30 billion in deposits
  • Credit unions: all credit unions