Ask someone where they bank and they may tell you about the credit union on the corner or the megabank downtown. But ask them how they pay or get paid and they may also mention PayPal, Starbucks or Walmart.
Nontraditional entrants are changing the way products and services are offered and, potentially, the relationships you’ve built with your accountholders. Expectations & Experiences: Channels and New Entrants showed a significant jump in the number of people who are comfortable with using technology, payments, retail and social media companies to manage and move money.
The most recent quarterly consumer trends survey by Fiserv found more than half (55 percent) of people would be comfortable using a technology company, such as Apple or Google, for various types of financial transactions, compared to 40 percent of respondents in 2017. At the same time, use of traditional financial institutions for bill payments, loans, money management and other financial services remains steady.
No matter what, consumers want a consistent, easy and intuitive digital experience. As consumers grow more comfortable transacting with nonfinancial providers, financial institutions must work to differentiate their experience.
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