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Nontraditional providers making inroads into retail banking space, study finds

September 21, 2017

A substantial number of consumers are comfortable using nonfinancial providers for essential activities such as paying bills, transferring money to others and taking out loans, according to the latest consumer trends survey from Fiserv.

The survey also found notable adoption of voice-activated technology, with half of consumers using a voice-activated device feature within the past year, and over a quarter of those using it for a banking function within the past 30 days, according to a press release about the report.

"Technology and payments companies may give banks and credit unions a run for the money as consumers become comfortable using these companies for financial activities, an undeniable signal for financial institutions to take note," Fiserv COO Mark Ernst said in the release. "It's critical that financial institutions think of themselves as technology providers in order to capture the opportunity to expand upon existing customer relationships and meet the demand for fast, convenient solutions that make people’s lives easier. The best and most convenient options will be the ones that win out."

While the majority of consumers remain most comfortable conducting financial activities through a bank or credit union, significant numbers are comfortable with newer options, too.

For instance, while 88 percent of consumers surveyed said they are comfortable paying bills through a bank or credit union, 52 percent were also comfortable using a payments company; 40 percent were fine with a technology company, and 16 percent were OK with a social media provider.

For taking out a loan, 82 percent are comfortable with a bank or credit union, 32 percent with a payments company, 29 percent with a technology company, and 14 percent with a social company.