Millennials banking habits could make Wall Street obsolete

Half of millenial consumers would consider swapping Google or Apple in for their current financial services provider, according to a study provided to Business Insider.

It’s a trend that could crush Wall Street.

The 2015 Makovsky Wall Street Reputation Study came out this week.

In it, there’s a subset covering millennial habits.

And within that data subset is some bad news for big banks.

49% of millennials said they would consider using financial services options from companies like Google or Apple. By comparison, only 16% of older consumers said they would consider making that move.

Apple and Google currently offer consumers products they can use to pay for goods and services. Lots of smaller Silicon Valley startups are also going after business lines traditionally owned by banks — everything from peer-to-peer lending, student loan securitization, and wealth management.

Another Makovsky survey notes that 77% of the executives it interviewed said they are concerned millennials will abandon traditional financial services companies.

“Marketing and communications executives at banks are very concerned with losing business to these companies,” Tangney said.

There is already evidence Wall Street is working to beat back the tide of startups chipping into their revenue.

Goldman Sachs has plans to establish an online consumer and small business lending division. This would have Goldman competing with nascent peer-to-peer lenders like On Deck and Lending Club.

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