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Study finds significant consumer willingness to bank with fintechs

November 26, 2017

A survey of more than 133,000 consumers in 22 countries reveals significant openness — at least half of respondents in most countries — to buying a financial services product from a technology company.

This is particularly true in countries where the banking experience is time-consuming and cumbersome, according to the survey by Bain & Co. and Research Now.

For example, in India, China and Mexico, 91, 88 and 81 percent of respondents, respectively, said they would be willing to run their finances through major tech firms. And, in the U.S. and U.K., consumers rate PayPal and Amazon nearly as high as banks when it comes to trust with their money.

"[L]arge technology firms already have digital prowess, established brands, and customer access, which provide an almost unassailable advantage in extending their corporate brands into banking," said Gerard du Toit, head of the banking practice at Bain and lead author of the report. "Many also already sell payment services, credit cards and loans, so it's plausible they will offer a suite of retail banking services in the near future."

The study found that banks have far to go to reduce costs, meet customer expectations and keep pace with nontraditional competitors. Only 45 percent of U.K. respondents said their primary bank's website lets them do everything they need. The share is even lower for mobile apps.

Banks also have yet to tap the potential of consumer technologies such as virtual reality and personal voice assistants (e.g., Alexa, Siri and Google Assistant). More than one-fourth of U.S. respondents said they would consider using voice-controlled assistants for their everyday banking. In Australia, the U.K. and the U.S. 5 to 6 percent of consumers said they already use voice assistants for banking; between one-fifth and one-fourth would try the technology for their banking in the future.