Will Amazon Be Millenials’ Primary Bank?

by Karen Augustine 0

Bank building exterior and interior counter desk.

Bain and Company conducted a survey of global consumers, reporting that more than half of US consumers would be willing to buy a financial services product from technology giants like Amazon, Google and Apple with Amazon the favorite. Bain predicts that Amazon could have as many as 70 million customers by 2023 for financial services if it enters the market, and especially for the 18-24 year olds.

Amazon is the best-positioned firm to succeed in US banking, because of its history of purchases and customer trust. The ecommerce behemoth has the advantage of owning credit card details and being fully-integrated into potential users’ computers, phones and tablets.”

Amazon is certainly making inroads into the customer experience, as Amazon is regularly gaining recognition for its brand. According to Mercator Advisory Group’s latest 2017 Banking and Channels survey results published in Omnichannel and Branch Banking: Getting It Right, consumers trust Visa (43%), credit unions (40%), community banks (39%), Amazon (39%) and PayPal (39%) more than they trust national or regional banks, though consumers have less faith in online only banks without branches (22%) than nearly any other type of company listed.

Young adults trust Visa (54%), Amazon (52%) and PayPal (51%) more than national banks, credit unions, community banks or even Google (each trusted by 43% of young adults), and certainly more than online only banks with no branches (32%), the least trustworthy of any type financial institution, though trusted more than Venmo (24%).

Yet, young adults still rely on the branches, and are more likely than average to visit the branch more often, to open new accounts, to meet with representatives, get advice or conduct other banking services.

Nonetheless, consumers appreciate the Amazon experience. Amazon and PayPal are making it easier for young adults to conduct their business wherever they may be and providing more customized and personalized experiences by knowing their customers and providing a high level of customer service and attention.

Overview by Karen Augustine, Manager, Primary Data Services at Mercator Advisory Group

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