21 August 2017
Find out more

UK consumers ready to swap banks for tech giants

16 May 2017  |  9699 views  |  1 digital banking

Nearly a third of UK consumers would consider using Amazon, Google, Facebook or Apple for banking services, while 48% would be happy for banks to share their transaction data with trusted third parties if it gave them a more personalised experience.

The research, conducted among 2000 UK adults by Mulesoft, highlights the shifting trends in banking services.

As tech giants move deeper into classic banking territory and startups begin to offer more responsive services, so consumer attitudes are adapting to the changing landscape. This is particularly true of the younger, more tech-oriented 18-34 year-old market, 45% of whom are prepared to embrace the new wave of banking providers.

“The threat to traditional banks from the likes of Google and Facebook is real," says Danny Healy, client architect, office of the CTO, Emea, MuleSoft. "We’ve already seen Apple and fintech companies encroach into the payments space, drastically changing customers’ expectations around the way they pay for things. Financial services organisations that offer seamless experiences across digital channels and innovate as fast as consumer tastes change will win over consumers.”

Banks should respond to the threat by taking an API-led approach to service provision, he says, harnessing data across multiple legacy silos and providing a more joined up, personalised experience for customers.

"Disconnected data and systems have a negative impact on customer loyalty," says Healy. "Through API-led connectivity and the creation of application networks, banks can transform their business models. Ultimately it will be the banks that successfully connect their applications, data and devices that will be able to innovation faster and improve customer satisfaction.”

Comments: (1)

Melvin Haskins
Melvin Haskins - Haston International Limited - | 16 May, 2017, 12:19

Whillst 48% of consumers who responded to this survey are prepared to have their money managed by US companies (all four are American), I would not put my faith in any of them, since they are proven to have few ethics. What happens when something goes wrong with your bank account? How will you get it resolved? None of them are reknowned for customer service in the face of a problem.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
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

Open APIs to shake up small business banking market

Open APIs to shake up small business banking market

23 March 2017  |  7510 views  |  0 comments | 20 tweets | 16 linkedin
Can banks really win in the payments business of the future? – new Finextra report

Can banks really win in the payments business of the future? – new Finextra report

20 March 2017  |  16530 views  |  0 comments | 31 tweets | 53 linkedin
PSR predicts 2017 will be a record-breaking year for open access to payment systems

PSR predicts 2017 will be a record-breaking year for open access to payment systems

09 March 2017  |  6493 views  |  0 comments | 9 tweets | 16 linkedin
HSBC forms tech advisory board

HSBC forms tech advisory board

17 January 2017  |  10869 views  |  0 comments | 22 tweets | 24 linkedin
Banks face big profit loss to digitisation - McKinsey

Banks face big profit loss to digitisation - McKinsey

16 January 2017  |  24992 views  |  0 comments | 101 tweets | 118 linkedin

Related blogs

Create a blog about this story (membership required)
visit www.worldpaymentsreport.comvisit www.dorsum.eudownload the paper now

Who is commenting?

A Finextra member Finextra Member Commented on: Real-time payments in...
A Finextra member Finextra Member Commented on: Barclays uses sensors...

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
11585 views comments | 26 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
9874 views comments | 22 tweets | 31 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
9674 views 0 | 5 tweets | 1 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
9383 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
9333 views comments | 10 tweets | 8 linkedin