Banks and credit unions in the U.S. retain the trust of a majority of clients, but they are coming under growing pressure by younger consumers who are open to delivery of products and services by less traditional means, according to a survey released Thursday.
Raddon Financial Group, a research firm owned by the financial services technology company Fiserv, conducted a consumer research poll of 1,200 U.S. adults in February, representing millennials, Gen Xers, boomers and traditionalists, those born in 1945 or earlier. The survey sought participants’ attitudes toward traditional and nontraditional financial services providers.
The poll found that 49% of all respondents believed nontraditional entities would influence how all providers delivered their products and services in the future.
Still, just 38% said they would be likely to use a nontraditional provider. These were most likely to be:
- PayPal: 26%
- Amazon: 19%
- Google: 16%
- Apple: 16%
Fifty-one percent of all survey participants said they would seek financial services only from banks or credit unions. However, younger and older respondents differed considerably on this preference.
What Your Peers Are Reading
Sixty-six percent of millennials and 62% of Gen Xers said they would consider using a nontraditional provider for their future financial services requirements.