For most consumers, trust is likely the key barometer by which new digital financial services are gauged, and younger cohorts appear to simply have more faith in fintech.
When asked which companies they would trust with their money, respondents said they had the most faith in their primary bank, followed by banks in general. But tech firms PayPal and Amazon followed in third and fourth place.
In other words, while consumers generally remain most comfortable with traditional banks for their retail banking and other financial needs, they are at least open to some of the larger tech firms taking over those responsibilities.
Bain & Company noted that part of the reason that tech firms stand to disrupt the finance sector is because of their strong brand recognition, as well as their ample experience providing solid customer service—two attributes that finance-focused startups might not yet have.
Bain & Company found that tech companies’ brand equity translated well for consumers considering adopting financial services from them. More than half of US internet users surveyed said they would consider using a credit card issued by a tech firm. About one-third said they would use a bank account from a technology enterprise, while three in 10 would use an investment service.
