The recent study carried out by Fujitsu company revealed surprising and unexpected responses from its respondents. With the participation of approximately 7,000 Europeans being asked if they’d like to bank with Apple, Google, Amazon, or Facebook?”, a fifth of consumers out of the whole number admitted they’d rather use banking services from big techs, like Facebook, Google, Amazon, and even Apple.
Furthermore, more than 37% of the study respondents would gladly leave their current bank and insurer unless they move their services onto a new technological level.
More Perks in Using Non-Bank Tech Giants
The fact remains: banking institutions are way in their services than leading non-bank tech giants, like Google, Apple, Facebook, and Amazon. No bank could boast with huge client’s databases, which is obvious and perhaps the biggest advantage of the tech companies so far.
See for yourself: as for April 2016, Facebook hosted more 1.65 billion monthly active users, and the amount of Apple iTunes accounts in 2014 reached over 800 million, most of which have credit cards on file. Not to say, most banks have poor internet systems, precisely when it comes to analytics and holding assets.
So, how would all of those big tech companies move into the world of finance? Well, Google has come up with several small financial services, including Android Pay and Google Wallet; besides Google users have an opportunity to send money through Google.
Likewise, you can do that through Facebook. Considering Amazon, this one got ever further in their finance technology by offering loans to the website’s customers and sellers.
- Personal Finance Apps for Teens and Young Adults.
- Best Apps that Make You Money.
- Apps for Saving Money on Groceries.
- Choose Your Best App to Send Money.
No wonder, more and more people seem to get interested in trusting their money to big tech companies and their payment methods. As stated by the poll, 44% of people still use cash to make their payments, although they’re always trying to explore new payment methods, including mobile payment services and wearable devices.
A senior vice-president responsible for Europe, Middle-East, India, and Africa at Fujitsu Francois Fleutiaux assumes: as soon as technologies become more convenient, it will make the adopting process much faster.
“Consumers show that they are open to innovative services because this is what makes their lives easier: 32% of Europeans already embrace mobile device payments, while 22% have adopted wearable technologies and 20% cryptocurrencies, such as Bitcoin”.
Modern Banks Are Totally Outmode in Technologies
Nevertheless, if present-day business considers a customer database as one of the essential parts of success, then big tech companies seem to completely win the race.
Unfortunately, they’re far less experienced with using technology as part of their business, still relying on doubtful and obsolete methods from the 1950s and base their services on consultancies. They remain to be relatively small setups, stuck with outdated working practices.
Right now the tech sector seems like taking over the role of banks and maybe today we can hardly imagine our businesses without having a banking license, in the nearest future it’s expected to accept the idea of integrating the new level high-technology services into our everyday lives.
Millennials Ready to Accept Disruption
The target audience born between 1981 and 1997 find the possible financial disruption quite a positive change. And by now, traditional banks start to feel great contention from progressive technology entrants.
So, the main question everyone is so eager about: would the Internet be a good replacement to traditional banks? Well, we don’t know for sure. Most startup companies keep doing things just as they were, giving preference to traditional banking institutions.
Nevertheless, there exist many other industries ready to accept financial disruption.
Originally published at medium.com