What’s an average citizen to do when getting a mortgage from a big bank or other financial institution isn’t an option? Perhaps you might consider taking out mortgages from a retailer like Walmart, or even PayPal? A new financial services study says there are plenty of people out there who would be down with a situation like that.
The results found that one in three U.S. consumers would consider a mortgage from Walmart, while almost half would think about giving the thumbs up to PayPal for one, reports Reuters. That’s quite a message for banks, since neither of those companies is even in the mortgage business and yet consumers are willing to try something, anything other than banks.
One of the leaders on the study says the results point to just how ready consumers are to find borrowers that aren’t banks, someone they can trust for a good price, customer service and to take care of them.
“There is a real threat from new entrants,” he said.
It’s not totally outside the bounds of imagination that either company might consider a move into the mortgage field at some point, as both delve into the financial world in their current services. Retailers like Costco already offer home loans online through a few lenders, and it seems to be going well, says the company.
With so many problems already plaguing the banking industry’s system of dealing with mortgages, tossing in other sources of the service could either be a welcome breath of fresh air — if it’s done right — or just another company mucking it all up, if it’s executed poorly.