Recent studies show that retail banks and wealth managers may have even more reason think about companies like Google, Walmart and Amazon as emerging competitors.
- The Millennial Disruption Index found that the banking industry is at the highest risk of disruption with 73 percent of Millennials, people between the ages of 18 to 33, who said that they would be more excited about a new offering in financial services from Google, Amazon, Apple, Paypal or Square than from their own nationwide bank.
- An Accenture survey cited that 46 percent of consumers aged 18 to 34 said if PayPal offered banking services, they would want to use them. About 40 percent said the same about Google and 23 percent favored Walmart. Accenture polled nearly 4,000 bank customers in North America.
Considering that Millennials will represent more than one of three Americans by 2020, it’s clear that the banking industry is reaching a tipping point. And Millennials in the U.S. are not the only ones who are shaping opinions on the bank of the future.
According to Chandan Sharma, global managing director financial services at Verizon Enterprise Solutions, most of the innovation in the banking sector is coming out of Silicon Valley not necessarily the banks. Further, Sharma says that technology companies in China have entered unchartered territory in both banking and wealth management.
Watch Sharma’s take on how emerging competition is poised to redefine financial services as we know it.
Editor’s Note: Check back with us soon to see more video excerpts from our bank of the future panel. You can also view the conversation from the event on Twitter using the hashtag #fintechchat.