Alternative Finances

Alt. Banking And Millennials, Perfect Together?

Nearly 40 percent of consumers 18 to 34 years of age would switch to a bank that lacked physical locations, according to two new reports by Accenture, reports the Financial Times. 

The threat is being felt acutely by mainstream financial institutions like banks.

“You'd be an idiot not to think that the Googles and Apples . . . they all want to eat our lunch. I mean, every single one of them. And they're going to try,” Jamie Dimon, chief executive of JPMorgan Chase,  told a shareholder meeting in February, reports FT.

When asked what services they would be likely to bank with, existing digital cash management networks PayPal and Square led the pack, with 50 and 41 percent reporting a preference for them.  Apple and Google also made strong showings--with 29 percent of millennials expressing that the iBank and G-Bank have some appeal for them. Among phone service provider, T-Mobile was a leaders, with 32 percent expressing interest in banking with them.

Despite the findings among young consumer, there still seems to be a preference for physical retail banking locations. California-based Wells Fago reports that over 80 percent of its products and services are engaged in banking centers.

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The September 2020 Leveraging The Digital Banking Shift Study, PYMNTS examines consumers’ growing use of online and mobile tools to open and manage accounts as well as the factors that are paramount in building and maintaining trust in the current economic environment. The report is based on a survey of nearly 2,200 account-holding U.S. consumers.

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