22 July 2018
Visit www.gemalto.com

Millennials look to tech firms to replace unloved banks

12 March 2014  |  17936 views  |  2 Teenagers using Smartphone

Nearly three quarters of America's millennials would rather go to the dentist than listen to what their banks have to say and are more interested in hearing from tech firms about financial services.

In a three year survey of 10,000 people from Viacom unit Scratch designed to gauge millennial attitudes to 15 different industries banking emerges as unloved and unwanted.

All four of America's leading banks are in the 10 least loved brands across industries. More than half of respondents say that their bank offers nothing different than any other providers and one in three are open to switching in the next 90 days.

In the longer term the picture is even bleaker, with banking considered the sector most at risk of disruption and more than two thirds of millennials - those born between 1981 and 2000 - saying that in five years the way we access money and pay for things will be completely different.

A third think that they won't need a bank at all in five years, while tech firms are expected to help fill the gap. Nearly half are counting on tech startups to overhaul the industry and three quarters would be more excited about a new offering in financial services from Amazon, Google, Apple, PayPal or Square than from their own bank.

The report chimes with a new survey of 560 financial executives from PricewaterhouseCoopers which reveals that nearly three quarters (71%) consider non-traditional competitors a threat, significantly higher than global counterparts overall (55%).

Comments: (2)

Adam Ripley
Adam Ripley - Certeco - London 12 March, 2014, 12:30

This research has got to the crux of the real threat to the banking industry. Trust in the banking sector has continued to drag and this is particularly true of generation Y and will be even more of an issue for digital natives. With peer to peer lending, virtual currencies etc the shape of the banking industry is fundamentally changing... Now it's down to the banks to work out how they will respond.. 

Be the first to give this comment the thumbs up 0 thumb ups!
A Finextra member
A Finextra member 12 March, 2014, 17:20

Trust , yes. But more than trust, it is also about service, ease of use and functionality.

Be the first to give this comment the thumbs up 0 thumb ups!
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Apple preparing to move into payments - WSJ

Apple preparing to move into payments - WSJ

27 January 2014  |  12673 views  |  3 comments | 29 tweets | 28 linkedin
New tech key for banks looking to capture 'millennial' generation - survey

New tech key for banks looking to capture 'millennial' generation - survey

18 November 2008  |  12426 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
Visit iliad-solutions.com/Visit https://secure.vasco.comVisit http://go.jumio.com/finextraAd

Who is commenting?

Top topics

Most viewed Most shared
Calmejane quits Lloyds Bank to join SocGenCalmejane quits Lloyds Bank to join SocGen
13570 views comments | 6 tweets | 8 linkedin
Hong Kong plans September go-live for blockchain-based trade financeHong Kong plans September go-live for bloc...
11242 views comments | 9 tweets | 17 linkedin
Mastercard enlists Worldpay to push Vocalink's Pay by Bank appMastercard enlists Worldpay to push Vocali...
10111 views 19 comments | 15 tweets | 30 linkedin
IBM to test dollar-pegged 'stablecoin'IBM to test dollar-pegged 'stablecoin'
7446 views comments | 4 tweets | 14 linkedin
Bringing about new systems and faster payments globallyBringing about new systems and faster paym...
7265 views comments | 2 tweets | 7 linkedin

Featured job

to GBP £120K base, double ote, benefits
Frankfurt, Germany

Find your next job