With Financial Health Stuck in Neutral, Customers Turn to New Strategies

A new year has arrived, but the same financial malaise persists. Inflation ticked up in December 2024 and the Consumer Price Index saw a 2.9% year-over-year increase, which is keeping bank customers in the United States on their heels.

According to JD Power data, 31% of customers are financially healthy[1], a rate that has largely remained unchanged since the summer. As a result, customers are trying to decipher new ways to get a handle on their finances, with many turning to banks in the hopes of a more holistic view of their finances. Part of that search includes an increased interest in open banking, which is the practice of banks securely exchanging financial information with other financial institutions or third parties, such as financial advice apps, digital payment processors and other service providers. 

Financial Health Remains Unchanged                                                 

The number of customers who are financially healthy remained the same in December at 31%, while 44% of bank customers fall into the vulnerable category.

The number of bank customers who say the cost of goods is increasing faster than their income also remained steady at 65%. Vulnerable customers saw a slight decrease to 74%, while healthy customers actually rose slightly to 51% from 49%.

A Holistic View

As customers continue to grapple with a tenuous financial landscape, many are expressing a bigger interest in seeing a complete picture of their finances in one place. One way to accomplish that is through more comprehensive financial aggregator tools. Overall, 41% of bank customers say it is extremely important for a bank’s mobile app to show the balances of their external accounts, up from 32% from May.

That interest has grown across all financial health segments, with stressed customers seeing the biggest jump in interest since the question was last asked in May 2024. Even older customers (40 and older) saw an increase of 9 percentage points.

Open for Business

The desire for more complete financial tools is indicative of an overall customer trend toward open banking. While historically, only customers and their banks have had access to their financial data, open banking is now enabling the development of new financial services products and offerings. By creating an easier flow of information from the bank to third parties, customers are finding improved ways to manage their money, make payments, and gain access to credit. With the practice gaining popularity with customers, the onus now shifts to banks to meet customers where they are and support better experiences—even when their customers are working with third parties.

Overall, more than one-third (36%) of banking customers are aware of open banking, with overextended (54%) and younger (53%) customers most familiar with the practice.

There is also a strong relationship between open banking and financial aggregator tools. For example, customers who are aware of open banking are more likely to use financial aggregator tools and understand the value of these tools.

A Better Understanding

With many customers still stuck in the same financial predicaments for the better part of two years, many seem to have a genuine interest in new ways to get a handle on their finances, and a willingness to try new solutions. For banks, that means they’ll have to be receptive to customer desires and tailor their products to those needs. 

Open banking and better financial aggregator tools allow customers to glean complete insights into their finances and that is a vital component of understanding how to take the next step. Banks that can provide this intelligence stand ready to benefit from a more informed and, eventually, more financially healthy customer base.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in December 2024. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

[1] JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.