23 Jun Millennials Turning to Virtual Finances
A new report from Accenture finds that the young, tech-savvy millennials have grown more inclined to trust internet and retail brands with their money than traditional banks, including Google, Apple and Paypal.
Many people between the ages of 18 and 34 prefer doing their banking completely online as well as getting their financial services from non-traditional financial service providers.
A strong 46 percent said they would be very likely to bank with PayPal, which is, of course, already a dominant player in payment services. Surprisingly, the list named Google, Amazon, Apple and Walmart in the top five alternate banking services.
Accenture’s poll shows that millennials are becoming much more comfortable with the idea of “branchless” banking where all transactions, from depositing checks to applying for loans, are conducted in the web browser, on the mobile phone or by telephone. In fact, older demographics are also following suit.
Ironically, being a virtual bank doesn’t require a company to become an actual bank. Popular online banking services don’t maintain any accounts; they contract them out to hold customers’ money while providing the front-end services.
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Image courtesy of businesstoday.com