Caught this stat the other day and thought I’d get your opinion of it ;)
58% of Millennials would consider banking with Amazon, Facebook or Google
if these tech giants enter the banking space
HAH! Could you imagine??
As if they needed any more of our money (or time)!!
But I missed the cut off of being a millennial and don’t even have a personal Facebook account anymore, so what does this Old fogy know….
I polled my twitter audience for better perspective and their responses did not disappoint ;) (And you can tell they’re millennials because of their epic gif game!)
Haha… that Free Prime idea probably would sway a few folks ;)
But as another (older) commenter pointed out, there’s no way these behemoths would even want to get into the business of banking and subject themselves to tougher financial regulations and more government scrutiny…
So probably not happening anytime soon, oh well!
Still, fun to think of/poke fun at ;)
Here were some other stats from the polling done by financial technology platform, Marqeta.com:
“Only 1-in-6 Millennials said they couldn’t imagine ever wanting to change from their current bank.”
Yup, same here! Over a decade banking with USAA and very much loving having all my accounts under one roof… I’m over the days of rate chasing…
UPDATE: I think I read that stat wrong, haha… It looks like it’s actually the *opposite* and people have no problems cheating on their banks! ;)
“48% of Millennials said they’d consider moving to an independent digital-only bank.”
I can see that… And there are some good digital banks out there right now (Simple Bank, Chime, etc), though not sure what they mean exactly by “independent”?
“More than half of Millennials (52%) said they were comfortable using TouchID and FaceID to authorize mobile wallet payments — almost double the number of Baby Boomers (29%) who said the same.”
Totally. Seems much better security wise than the usual routes to me! Though admittedly I’ve never tried them or even looked into them before, haha…. You guys?
“More than twice as many Millennials (57%) than Baby Boomers (27%) said that they have used peer-to-peer banking apps like Square Cash or Venmo.”
I hear Venmo is all the rage, but I still stick to my old school Paypal account… And they’re basically the same company anyways, just targeted differently.
“Millennials (49%) were twice as likely as Baby Boomers (20%) to pay someone back using a peer-to-peer banking app than a physical currency like cash or check.”
Haha yup… Paying people back in checks is super annoying, but not even for the hassle of writing them out, but for the *waiting* of them to actually be cashed! It’s the worst waiting and waiting and then eventually forgetting until the day it randomly shows up on your account and you pray you have enough funds to cover it! Though I don’t mind an ounce receiving checks in the least, haha… I’ll take money however it comes! ;)
Anyways, not sure what the point of this is today, but I am curious to hear your thoughts if any of these guys ever DO one day get into the banking business and cause a stir…
Would you ever open an account with Amazon or Google or Facebook? If you had to choose one, which would you go for?
(I’d prob go with Google, just because I’m over Facebook and we already give plenty of our money to Amazon as it is, haha…)
None of them made Forbes’ list of “World’s Best Banks” we shared last week, but you never know – it could be a reality one day!! Technology is creeping into our lives more and more, and it’s good to know where your boundaries lie.
*****
// Google pic by lalo Hernandez
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I have almost zero experience with Amazon and avoid Facebook like a plague. However, Google has all my trust, not because it is the best company ever but what other option do you have? We are kind of dependent on it and Google already knows everything about us, like it or not. So why don’t bank with the one who already knows you better than any of your friends? :D
They do know a lot about us, that’s for sure haha….
I would not open an acct with FB, Google nor Amazon. I have banked with NFCU for over 30 years and plan to continue. I became familiar with Venmo when handyman preferred his payment that way – easy to set up and use. As the treasurer of an HOA, I set up account for those members who prefer electronic payment though no one has used yet not even those members who complained about sending check through the mail or leaving in my mailbox. Had a PayPal acct many years ago and found that experience to be ok.
Navy Federal is pretty great – I agree :)
Absolutely not. If I had to choose one I guess I’d pick google. I’ve known two people in the last 4 months have their amazon credit card scammed and amazon did absolutely nothing. I know chase issues the card so they have a role in it too but still.
One of the people spent over 4 hrs bouncing back and forth between the two companies and ended up in tears. The other informed amazon of fraudulent charge, they said they would look into it, and less than 24 hrs later they emailed it was fine and they were closing the case. He then closed his amazon account all.
Their security is seriously lacking and I wouldn’t trust them with all my money.
This right here is why I’ll do a hard pass. They already have information leaks continually and sell our information whenever and to whomever they want. Imagine if they had all the info on how you banked as well? No thank you! I’ll stick with the banks I use now!
Yup – good enough reason for me too! :)
I’d consider using them for my savings if the interest rate was better than what I can get anywhere else. But i don’t think I’d move from my local bank for checking.
The regulatory rigamarole was what first sprung to my mind, too. I trust GOOG with everything else; why not banking services? Except that like Robin, my CU has been magnificent on the rare occasion something out-of-the-ordinary pops up, and they’ve never screwed me over on the routine stuff… so I’d rather stick with them.
That said, I’m having a hard enough time getting my wife to consider moving her old Cap1 account, even though it charges her four bucks a month in misc dumb checking fees.
I was getting some lame fees from them too for my biz checking and had to call and get reversed (as well as *explained* as they just started coming out of the blue it seemed?? Turns out you now need minimum balances there to avoid ’em – at least the accounts I have)
T-Mobile offers banking and if you are willing to jump through some hoops and are a customer you can get 4% on up to $3K in deposits. So I can see the appeal of using a tech company if the perks were right
I personally don’t do it because I like having my deposit accounts in the same credit union as my mortgage.
What? Really? T-Mobile as in the cell phone place?
It would depend on who had the best rate while still having fdic. A company is a company. If I’m insured and they pay me more interest I don’t really care who it is. If they are nod fdic insured then they can’t have my funds.
Old Millennial/”cusper” here (1984). If I *had* to choose, I’d go Google (they already have my card information stored), but I’d not choose of my own will. I’m sticking with my credit union.
Also, just one nit-pick: “Only 1-in-6 Millennials said they couldn’t imagine ever wanting to change from their current bank.” I read this as only 1 *couldn’t* imagine wanting to change, meaning 5 of them *could* imagine leaving their banks.
Good stuff, J!
Oops… I think you read it right and I read it wrong!! Haha… good catch!
Maybe Google because they wouldn’t be able to parse any useful information about my spending habits that they didn’t already have (you know, since I use gmail and all purchases are accompanied by an emailed receipt which they scan to better serve you advertisements…ugh I really need to switch to protonmail…).
Maybe Amazon, since they already know 80% of my purchases. Never Facebook though, Never.
I might, but only if there are better somehow. Why change when everything is working fine? I like my local credit union.
Oh HECK no. Facebook has a horrible history of behaving unethically, Amazon has terrible labor practices, and Google already knows too much about us. I’m not giving them any more foothold into our financial lives than they have.
I’m actively working on moving away from relying on Amazon / Google so much.
Let me know when you figure out how to do that!! :)
I would never ever give any valid info to Facebook; I believe that guy who demands legal ID to use his social network is a crooked scammer. I love a lot about Google, but I do not trust it enough to give a payment method – including PayPal – to use the Play Store. I don’t want Google, either, to know my identity. But I LOVE the idea of free Prime (for life, lol) for opening a checkng account! I am ready to open that Amazon bank account even though it was a mere suggestion. I would never pay for Prime, but have had free trials from time to time. Amazon has certainly earned some of my trust, and I could see it approaching the value to the consumer of Capital One. Those gifs and your Twitter responses are great.
Glad you enjoyed this, Bela!! Thanks for chiming in! :)
It’s interesting that in your prior post on best banks you link to at the bottom, 4 of the top 10 banks in the UK are branded with top UK retail brands, i.e., they are the equivalent of “Amazon Bank.” (Virgin, M&S [Marks & Spensor], Sainsburys, Tesco)
Oh wow!! Didn’t even realize that! And look how well they’re doing too – I guess that match up works?!
I don’t trust any of the on-line guys. You can rely on them to play fast and loose with your privacy. And big banks don’t give a damn about you. A credit union is the only option for me.
I guess it’s easy to tell that I’m not a millennial (but my kids are).
Haha… love that you’re nice an opinionated as they are though ;)
First time, long time.
When I was able to handle the property management aspect of being a landlord and had a tenant I could trust, we actually used Facebook Messenger’s payment system. It’s pretty similar to Venmo.
Google Pay isn’t too far off either.
You could argue that with as prevalent as Amazon is in…well, everything, that Amazon gift cards are almost a form of currency at this point.
Haha… you’re not wrong there ;)
As usual, another good article J.
I have learned to not say, never, because things are constantly changing, as am I. So, while I prefer my privacy and think that these companies know too much about us already who knows where things will be in the future. But, I hope we do not come to that.
Right now, though, I would say, no to all of them. They have too much power as it is. Unless something changes I see no reason to leave the companies that are working just fine for my needs.
On a different note, I don’t know much about how computer or browsers work, so this might mean something or nothing. Hope it helps.
I got to this article by first opening your message in my gmail email account in the Chrome browser. I then clicked on the article to read it & comments in full from your blog. After composing my response and as I was about to hit “Submit” I noticed up at the top left of the url the following words in red font, “Not secure.”
I then opened the article in a new tab, still in Chrome. Same thing happened.
I decided to see if the same thing would happen in another browser, Edge. It did not. So, I figured it must be safe to submit my comments from Edge.
Take care.
Yeah, it’s because I don’t have an “s” there in the HTTP part of the domain which a lot of places are starting to go towards now… We probably will at some point, but for now afraid of it breaking the site and nothing working so might be a bit longer until we keep up with the times :) Thanks for the heads up though! And I agree with your social media assessment here!
Also realizing this is more true and true as the years go by – “I have learned to not say, never, because things are constantly changing, as am I.” Well put.
Thanks for your explanation about the “s” in the HTTP part of the domain name J.
I appreciate reading your articles and how you take the time to respond. I don’t think it is possible for you or any blogger to respond to all comments. But you do a darn good job on your response rate, and it feels very special when I receive a personal response. :)
By the way, I don’t expect a reply to this comment. I know you are busy. Just wanted to let you know how much I appreciate you and the work you do.
Enjoy your weekend.
XOXO
Hot take: I would imagine these three would at least make a decent user interface and smooth customer experience, something I have struggled with in the banks I have worked with thus far (both credit unions). And I might trust them more if, unlike most banks today, they were required to be completed divested from investment banking, a measure put in place after the crash of 29, but eliminated before the recession of 08.
I would see them more likely to get involved on the UX side of banking – not necessarily being the bank but designing an API that interfaces with banks. And I should point out that Amazon already has Amazon Payments, and I would say those types of services are more likely where they will invest their time and resources.
Very true on the UX stuff… That’s what tech does best!
Funny to read the blog post and the comments’ section after the Apple card announcement. Wondering how this will shake things up
SIGN ME UP!!
#NOT