Project Goal
To understand consumer behavior and identify obstacles when it comes to debit card use in order to facilitate and improve banking experience.
Questions
- Do consumers use a debit card and why or why not?
- How often do consumers use a debit card?
- What do consumers use instead of a debit card?
- Why does a user use or not use a debit card?
- Based on the number of people who don’t use debit cards, is there an opportunity to increase debit card usage among consumers?
Process
Design
- Survey created using Qualtrics
- 4 Demographic Questions
- Two categories (yes or no)
Recruitment
- Text Message
- Social Media
Criteria
- Have a banking account
- Over the age of 18
- Lives inside the US
Results & Findings
Do you prefer to use an ATM or In-person banking?
83%
Perfer to use an ATM
- Convenience
- No Contact with people
17%
Perfer In-Person Banking
- Interaction with people
- Safety
Reasons for NO
70%
I prefer to use other forms of payment
Cash is King; Habit Don’t See the Need for it
- Like to Keep Track of Checking Balance in Checkbook
- Prefer Current Methods
- Low Transaction Fees
20%
Security Concerns
If an issue would arise it is not easy to resolve. Credit cards will reverse unauthorized charges and help fight fraud
- Less Secure than Credit
- Not Insured against Theft
- Not Great at Tracking Spending
- Don’t feel safe using ATM
10%
Other
Cash back and rewards from credit card
- No Cash Rewards
- I like it not to Come out of my Account right Away
- Credit Card let’s me Wait up to a Month to Pay
Insights & Recommendations
Potential Debit Card Users
- 11 % of the people that we surveyed said that they do not use a debit card
- One third of those people said they would consider using a debit card
Recommendation
- Capital One can market their debit card program to the small market of users who would consider using a debit card
- Capital One could also address the concerns and offer assurance about the debit card
Security
- People think debit card are not insured against theft
- In some cities and towns they don’t feel safe using ATMs
- People feel safer inside the bank, some of them even prefer using the ATMs inside the bank
Recommendation
- Educate consumers on current debit card protection plan and banking security features
- Further research ways to make consumers feel safe when using a debit card or withdrawing money from the bank. One possible question to be answer could be: Why does the inside of the bank make them feel safer?
Social Behavior
- One group of people prefers to use the teller line for transactions because they prefer human interactions and don’t trust in machines
- Other people like that there is no need to talk with someone when using the ATM
- ATM’s are a good option during this pandemic since there is less human contact
Recommendation
- Invest in digital tellers to give the user a choice
- Human interaction of talking with a teller via video chat (no physical contact, but the option of teller services)
- hybrid (digital/no-contact & actual humans inside of the bank)
Education
The lack of knowledge about features and sources available makes people think:
- Debit card are not insured against theft or fraudulent transactions
- They can’t withdraw small bill from the ATM
- Debit card are not insured against theft or fraudulent transactions
Recommendation
- Develop opportunities to educate consumers on how easy it is to use a debit card
- Further research, consumer security concerns and develop new ways to educate consumers
Incentives
- Originally we believed that cash would be our competition, but most of the participants who preferred not to use a debit card, preferred to use a credit card because of the rewards and benefits
- Some participant don’t use the ATM because of the fees
Recommendation
- Incorporate rewards such as earning cash back on purchases when using a debit card
- Promote existing perks of using a debit card such as no fees for withdrawing money and zero overdraft fees