A majority of Americans, 64%, would consider purchasing or applying for financial products from a Big Tech company instead of a traditional financial services provider. Among those ages 18 to 34, this figure skyrockets to 81%, and Americans ages 35 to 44 are close behind at 79%.
Majority of Americans would allow Big Tech to use their spending data
According to the Ondot Systems survey also provides a warning to smaller financial institutions: Nearly three quarters, 72%, of Americans agree that tech companies, such as Google, Apple, Amazon and Facebook, entering financial services would threaten the existence of smaller banks and credit unions.
“Smaller financial institutions need to close the technology gap with large technology companies or many of their customers could be tempted to leave,” said Vaduvur Bharghavan, CEO of Ondot Systems. “Americans – especially younger ones – are receptive to new financial services offerings from technology companies, and smaller banks and credit unions are especially vulnerable.”
The survey found that a majority of Americans (64%) believe if technology companies competed head-to-head with traditional financial services providers, financial products would improve. Those between the ages of 18 and 44 would consider purchasing or applying for a financial product from a tech company because they provide products that are more convenient to use (35%), have tools to make it easier to stay on top of budget/spending (30%) and better technology/digital features (28%).
Key findings:
- 81% of Americans ages 18 to 34 would consider purchasing or applying for a financial product from a tech company instead of a bank/credit union (64% among general population).
- 72% of Americans agree that tech companies such as Google, Apple, Amazon and Facebook entering financial services would threaten smaller banks and credit unions.
- 64% believe that if Big Tech competed head-to-head with banks and credit unions, financial products would improve.
- 74% of Americans agree tech companies are more likely to sell an individual’s personal financial data than traditional financial services providers.
- 58% would allow tech companies such as Google, Apple, Amazon and Facebook to use their spending data (that figure leaps to 75% for those ages 18 to 34).
- 36% would allow spending data to be used to prevent fraud
- 32% would allow spending data to be used to offer discounts
- 27% would allow spending data to be used to make managing their money faster/easier.
“Technology companies have spent years and billions of dollars designing customer-centric platforms that deliver an easy user experience, Apple Card’s instant issuance feature being a recent example,” said Bharghavan. “As a result, consumers have incredibly high expectations of the companies with which they do business, including financial institutions.”
Despite a willingness to try financial services offered by technology companies, many Americans still indicate skepticism with how their personal information might be used. 74% of Americans agree that tech companies are more likely to sell an individual’s personal financial data than traditional financial services providers like banks and credit unions.
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