business news in context, analysis with attitude

Reuters reports that a global survey reveals that 31 percent of customers around the world would be willing to switch their bank accounts to Amazon, Facebook or Google if those entities offered financial services. Twenty-nine percent of customers would go to those companies for insurance purposes.

The study, conducted by Accenture, found that "there was broad consumer demand for banks and insurance companies to use robo-advisory services, or software propelled by artificial intelligence or less human intervention ... When it came to specific services, more than 7 in 10 respondents said they would use robo-advice to figure out what kind of bank account to open, and nearly 4 out of 5 said they would use it for investing.

"But 68 percent of respondents said they did not want a robot handling customer complaints, and 61 percent said they would prefer a human over an automated system for advice about complex products like mortgages."
KC's View:
I think this illustrates two things. One is that many consumers are fed up with the arrogance that so many banks demonstrate in their interactions with customers ... which is one of the reasons that I've always thought that Walmart could make some significant inroads in the financial services industry if it were allowed to get into the banking business. (And why the financial services business is willing to spend so much money to lobby lawmakers to make sure that Walmart can't do so.)

The other is the degree of trust that companies like Amazon, Facebook and Google have engendered among their customers.

Both rationales are worth considering, I think.