Younger consumers prefer digital banks

It’s not really a surprise that younger people prefer digital. They have grown up with it and they trust it.

So its not really a surprise when a survey demonstrates that 40 percent of 18-34 years olds surveyed said they would consider a switch to a digital bank.

In fact, the desire to bank with a digital bank is what at stake. It appears that younger people are more likely to bank with an organisation that provides them with the service digitally. Apparently, whether they are a bank or not in the traditional sense of the word is not all that relevant. The research provided in Canada’s Times Colonist has demonstrated what could be the traditional bank’s worst nightmare. What 18-34’s are looking for are service providers and not really banks. For example of the people surveyed, 40% would consider banking with Google, 37 per cent with Amazon and 34 percent with Apple.

In Canada or The United States , 72 per cent of  respondents would either be likely or very likely to “bank” with a technology, retail or shipping/postal company if they offered financial services.  What is obvious here is that digital boundaries are being swept away. Just being a bank in the digital world is not going to cut it in this space moving forward. More and more financial companies are going to need to offer more service and engage more deeply with customers to keep their business. You’ve got to be a digital bank, not just a bank.  Digital banks engages with and provides services to assist with financial management and purchasing, not simply just a place to store money.