Online student marketplace LendEDU recently asked 1,000 Amazon customers if they would trust Amazon as they would trust a bank to handle their finances, and 38% responded positively.
Meanwhile Bain & Co., a management consulting firm, surveyed more than 133,000 consumers across 22 countries, asking them if they would be comfortable buying financial services from large technology companies. PayPal was the most trusted tech company when it comes to finances, according to the survey. Amazon came in second, followed by Apple. The survey found more than half of U.S. respondents—and three quarters of those ages 18 to 24—would purchase financial services from a tech company.
Whatever metrics are used, it is clear that consumers, especially younger consumers, are open to the idea of using banking services through a tech company such as Amazon.
“Amazon stands a very good chance of succeeding in banking, by disrupting the industry as it has in retailing,” said Gerard du Toit, who leads Bain & Co.’s banking and payments sector in the Americas. “Customers indicate ample willingness to buy financial products from technology firms, and Amazon has earned their trust more than most other tech firms. It also possesses all the essential ingredients: digital prowess, a large customer base, an organization skilled at delivering pleasant customer experiences, and ample leeway to extend the brand into banking.”