Younger Generation Prefers Paypal or Square Over Traditional Banking

[Corey Dutton]

From a recent poll of customer banking preferences, as seen on Bank Innovation, the younger generation is growing extremely comfortable with non-bank, banking services. So comfortable in fact, that 77% of the poll’s respondents 34 years and under would consider banking with a non-bank banking service such as Square or PayPal over using a traditional bank.

This poll represents a huge threat to U.S. banking institutions that are scrambling to keep up with the demand for online and mobile banking solutions, while also battling to protect the privacy of their customer information. This represents an ongoing battle for U.S. banking giants who also wrestle with the probability that branches will become altogether obsolete sometime in the short to long term. This dramatic shift of the big banks from their old school business model to a digital-based business model bears the following question. How will the large U.S. banking institutions compete with non-bank, banking services like Square and PayPal? How can they differentiate themselves and appeal to a new, younger generation of consumers?

(Source: BankInnovation.com: http://www.bankinnovation.net/2014/05/customers-want-more-than-banks-are-giving/)

Posted by Corey Curwick Dutton