BANKING WITH APPLE COULD POSE SERIOUS CHALLENGE TO HIGH STREET ACCORDING TO A NEW RESEARCH REPORT
(LONDON, UK) 20 March 2012: Leading strategic marketing and research consultancy KAE, in conjunction with Toluna, a global pioneer in online polls, surveys and opinions, this week reveal the startling findings of a new research study into the opinions of consumers towards the potential of technology giant, Apple, breaking into the banking sector.
The survey, using Toluna’s global research panel community of 4 million consumers worldwide, collected data from over 5,000 respondents, across the US and UK, and revealed that one in ten people (10%) would consider banking with Apple. Of those who are already Apple customers, 43% would consider switching to Apple for their day to day banking needs.
The impressive levels of trust generated between Apple and their customers was the main reason given for a possible switch to an Apple Bank, with around two-thirds citing their trust in the brand (66%) as the primary reason, and just over half claiming they think Apple would make their account easy to access and manage, as well as providing a reliable service.
It comes as no surprise that the majority (81%) of people who would bank with Apple are technology savvy and currently do their banking online. In terms of overall attitudes towards banking, the study also found that these consumers display great interest in using their smartphone for personal banking (62%), and are even of the opinion that call centres may not exist in the future as everything will be done online (53%).
Of those surveyed in the UK, almost one in five currently bank with Lloyds Banking Group (18%) or Barclays (14%), while in the US almost a quarter (23%) are with Bank of America and around one in ten with JP Morgan Chase (11%).
MD of KAE, David Rankin, commented: “Apple would face no capital constraints in building a deposits base. With a proven ability to cross-sell additional products, along with the highest sales per square foot of any retailer and an affluent customer base, it wouldn’t take long for Apple to become one of the most profitable consumer banks in recent times. Once the power of the Apple brand and its options for growth are understood, it tends to prompt one of three responses from financial institutions: accelerated invention, defensive benchmarking or blissful issue avoidance. We know that not everyone would be impressed by the arrival of an ‘iBank’; we also know that the boldness of the next big Apple move will inspire and terrify in equal measure”.
“The strength of Apple’s relationship with consumers is a result of its ability to redefine the terms of competition in an industry and design emotionally rich ‘human’ experiences”, said Lee Powney, Chief Commercial Officer at KAE. “This research tells us Apple customers perceive a fit where at first glance we would assume the brand could not travel. To observe a ‘wrong’ and ‘make right’ is a core characteristic of this business. Apple’s ethos, its way of being and way of doing is instinctively understood by its customers. This makes it a truly dangerous animal to a startling array of sectors”
On the likelihood of Apple entering into this sector, Powney also added “When you look at the possible cross fertilisation effects on purchases of moving this amount of cash into the model, and the resulting increases in preference for its platform from developers and content owners, it would take a remarkable display of discipline to resist. However it would be very ‘un-Apple’ to simply enter into a market without changing the terms of competition”.
About the research
The nationally representative KAE Toluna survey was conducted across the US and the UK, with a total sample size of 5,092 (2,921 respondents from the US and 2,971 respondents from the UK). The profile of those consumers who would consider switching their banking services to Apple comprised men and women aged 25-44, living in city centres or city suburban areas, with an average monthly income of between £900-£2,099 in the UK and $1,000-$3,499 and $6,000+ in the US.
KAE has been providing clients with an innovative, empirically supported advantage for the last 40 years. We are focused on working with our clients to provide them with key market insights and strategic advice on the full gambit of marketing issues, from evaluating potential markets through a rigorous, hands-on process, to working with you to develop strategies to better maximise market opportunities
Leading online panel community pioneer Toluna combines its online market research panel with industry-leading technology, enabling organisations to generate valuable customer insight by surveying their target audience quickly and efficiently.