A new study by Bain and Company has found that customers in India are willing to place their trust on new age technology companies such as Apple and Amazon even for financial products, as opposed to traditional banking players. In its latest research report, in which the company partnered with Research Now to survey more than 133,000 consumers in 22 countries, Bain found that across most countries, at least half of respondents said they are open to buying a financial services product from a technology company. Notably in India, this figure is much higher at 91%. The research notes that banking experience in India is more time consuming and cumbersome. “Interest is similarly high in countries that have long used non-bank payment systems, such as in China, where many consumers conduct financial transactions via WeChat. Here, 88 percent of consumers said they would bank with a tech firm,” said the report.
Bain and Company says that customers are increasingly preferring to use trust large technology firms such as Amazon. “Large technology firms already have digital prowess, established brands, and customer access, which provide an almost unassailable advantage in extending their corporate brands into banking. Many also already sell payment services, credit cards and loans, so it’s plausible they will offer a suite of retail banking services in the near future,” said Gerard du Toit, head of Bain’s Banking Practice and lead author of the report.
Further, most of the respondents said that banking apps have a long way to go. “Most survey respondents said banking apps and websites fall short of being convenient, multi-functional, and easy to use. Only 45 percent of U.K. respondents said their primary bank’s website lets them do everything they need. The share is even lower for banks’ mobile apps,” says the Bain and Company report.
Virtual reality and personal voice assistants, such as Alexa, Siri and Google Assistant, have the potential to replace bank call centers. In the U.S, more than one-quarter of respondents said they would consider using voice-controlled assistants for their everyday banking. “Just as intriguing is the 5 percent to 6 percent share of consumers in Australia, the U.K. and the U.S. already using voice assistants for banking; between one-fifth and one-quarter would try the technology for their banking in the future,” says the report.