Google credit card or Apple home loan? The emerging threat to Aussie banks.
Would you own a 'Google credit card' or an 'Apple home loan'? Such products could soon be a reality with large technology giants expected to be launching low cost financial products as soon as the next five years.
With digital wallets and mobile devices increasing in popularity at the retail check out point, banks are beginning to ask themselves what will be the consequences when the likes of Amazon, Apple or Google decide to pursue the financial services market further?
It seems the realistic answer is that the tech giants could very well create a cashless society and swallow a large piece of the traditional banking market.
A survey in 2012 of 5,000 respondents in the U.S. and and U.K. by KAE and Toluna found that 10 percent of people would trust to put their savings in a 'Apple Bank.'
According to Nine.MSN, for traditional banks to remain successful in the future they will need to place an emphasis on customer service, something that ANZ and Commonwealth Bank of Australia have already begun to recognise but that other major banks may have yet to acknowledge.
Chief executive of NAB, Cameron Clyne, believes that it would be a natural step for technology giants to chase the strong rewards that can be found in the financial services sector and that a tie-up between a major bank and technology player could not be ruled out.
Whether online or traditional brick and mortar, Australians can compare products to find the best banking deals on their home loan, credit card and more on Mozo.
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