Millennials, Gen X and even Boomers will ditch banks for Amazon
A perfect digital storm is brewing, and traditional financial institutions are sailing straight into it. How will today's banking providers survive if everyone wants to make the switch and "go Prime"?
According to a report from Novantas, 58% of potential switchers — those consumers who are looking to move to a new primary financial institution or would consider doing so — are open to alternate providers like Amazon, Facebook, Apple, or Google. That finding represents a startling 14-point increase over the 2017 survey.
“Many U.S. banks are currently facing the same conundrum: how to position themselves to acquire at least their fair share of new customers while continuing to appeal to — and not alienate — their current customer base,” Novantas said in their report, stressing urgency as banking providers seek answers to these challenges.
Part of the problem, according to Novantas, is that financial marketers overestimate the differences between generations, causing many banks and credit unions to drag their feet. Traditional institutions seem to think they can take their time responding to consumers’ digital preferences, assuming that older consumers are in no rush and will stick around. They are sorely mistaken.
In its study, Novantas classified those who have switched banking providers in the last few months as “recent purchasers”. In the survey, nearly two-thirds of these switchers were either Millennials (47%) or Gen Z (15%). But one in five (20%) were Boomers, and an equal number were Gen X.
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