Ondot’s The Harris Poll Reveals Consumers Open to Receiving Financial Services from Tech Companies
Desire to engage with tech companies is high despite concerns that they are not transparent in how they use consumer data
Ondot Systems, the digital card services platform for credit and debit issuers, recently commissioned a survey by The Harris Poll to gauge how much trust consumers have in technology companies like Google, Amazon, Apple and Facebook, to provide financial services.
According to the survey, 64 percent of Americans would consider purchasing or applying for financial products from a technology company instead of a traditional financial service provider, like a bank or credit union. This sentiment rises to 81 percent for those ages 18 to 34. Fifty-five percent of Americans trust technology companies with their personal financial data. That figure pops to 66 percent for those ages 18 to 34.
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Despite a majority saying they would consider purchasing or applying for financial products from a tech company instead of a traditional financial services provider, nearly three quarters (74 percent) of Americans said technology companies are more likely than traditional financial service providers to sell an individual’s personal financial data.
“The news that Google will offer a smart debit card makes it the latest tech giant to enter financial services by trying to make cards easier to use and manage” said Vaduvur Bharghavan, CEO of Ondot Systems. “With the coronavirus making it harder for customers to shop in-store, and with community banks and credit unions restricting branch and contact center hours, consumers necessarily have to rely on digital tools – both for making purchases and for financial management.”
The study also found that if they purchased or applied for a financial product from a tech company such as Amazon, Apple, Google or Facebook, a majority of Americans (58 percent) would allow them to use their spending data (that figure leaps to 75 percent for those ages 18 to 34).
For example, 36 percent said they would allow their spending data to be used to prevent fraud and 32 percent said they would allow it to be used to offer discounts. More than a quarter (27 percent) would allow their spending data to be used by tech companies to make managing their money faster/easier.
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The survey suggests technology companies still have key areas where many consumers distrust them.
- 75 percent agree technology companies are not transparent about how they use people’s personal information.
- 69 percent agree tech companies are more likely to have a data breach than traditional financial services providers.
“Banks and credit unions need to adapt in order to survive,” said Bharghavan. “Consumers are attracted to the easy user experience they find with tech companies, and are willing to overcome misgivings about how technology companies use their data. The vast majority of them consider technology companies – not just banks and credit unions – viable financial services partners. Having said that, consumers trust their banks with their money. It is a necessity and an opportunity for banks to deliver the digital-first capabilities that give consumers the convenience they seek with the security they need.”
Ondot recently launched Card App, a product that enables any bank or credit union to brand and deliver an experience similar to those offered by Apple Card and the reported Google debit card, including instant card signup, wallet provisioning, spending insights and easy self-service.
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