Facebook, Apple, Amazon, Netflix, Google Bank anyone?

By Daniel Lanyon on 16th May 2018

Fintech

Over half of under 45s interested in banking products from tech giants .

Facebook, Apple, Amazon, Netflix, Google Bank anyone?Image source: https://goo.gl/kuNUY8

A popular narrative has evolved among fintech watchers that the efforts of disruptive start-ups and up-starts, as well as incumbent banking giants, will imminently be scuppered by a rush into financial services from the tech giants of Silicon Valley.

In the wake of Facebook’s recent turmoil and an increasing taste for regulation and taxation, most notably by the European Union, the ‘inevitable’ competition has been thrown into question despite the news that Apple and Goldman Sachs are jointly launching a credit card.

More than half (51 per cent) of UK adults under 45 years old, however, would be interested in banking products or services from technology giants such as Apple, Amazon or Google, according to research from Equifax.

Of those, 45 per cent said that products or services like loans, credit cards or current account from tech firms would only appeal if they could offer better value than banks.

Across all age groups, the level of interest in banking products from leading technology firms falls to 40 per cent, with over a quarter (27 per cent) of Brits stating they would rather use their existing bank. This was due to banks’ familiarly rather than distaste for tech firms.

Jake Ranson, CMO at Equifax, says Apple joining forces with Goldman Sachs to launch a consumer credit card highlights how tech companies plan to shake up the banking industry.

“Although a sense of brand familiarity pins many people to their current bank, there’s an appetite for new products and a desire for alternatives that can offer something genuinely different. The tech giants have a loyal brand following in their own right, if they can combine this with a competitive product offering we’ll see an interesting shift in dynamics as the fight to attract customers heats up,” he said. 

Equifax surveyed 2,002 adults in May 2018 and it says the figures are representative of all adults in the UK.

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