Table of Contents
Executive Summary
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- The issues
- Consumer awareness for new financial tech is low
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- Figure 1: Knowledge and usage of FinTech services, March 2016
- Majority of consumers satisfied with current financial services
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- Figure 2: Consumers’ trust and satisfaction with financial services, March 2016
- Traditional touchpoints most preferred for engaging with financial services
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- Figure 3: Methods of interacting with financial services, March 2016
- Consumers trust traditional finance, but security threats are growing
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- Figure 4: Consumers trust in stores to protect payment information, by age, March 2016
- The opportunities
- Partnerships between traditional finance and FinTech
- Help consumers better understand finance
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- Figure 5: Interest in advice from financial services providers, by age, March 2016
- Tap into consumer desire to be strategic spenders
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- Figure 6: Perceptions regarding spending money, March 2016
- Strong cybersecurity encompasses technology, people and processes
- What it means
The Market – What You Need to Know
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- Regulators turning their attention to the FinTech market
- Consumer confidence stable
Market Factors
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- Regulatory pressure may not come immediately, but will have dramatic implications for FinTech
- Consumer economic sentiment an opportunity for FinTech
Key Players – What You Need to Know
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- Faster and easier interaction with financial services driving change
- Synchrony Financial takes on user experience
- Envestnet | Yodlee addresses need for smaller loans
- Akouba discusses the digitalization of lending
- WallScott and Covenant Security Solutions develop framework for protecting data
What’s Changing?
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- How FinTech is changing financial services
Industry Perspective on User Experience – Synchrony Financial
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- Synchrony Financial’s top themes influencing financial services
- The integration of technology and expertise
- User experience highlight: The integration of health and finance with the CareCredit Mobile App
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- Figure 7: Knowledge and usage of FinTech services, March 2016
- What it means for consumers
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- Figure 8: Methods of interacting with financial services, by age, March 2016
Industry Perspective on Lending – Envestnet | Yodlee
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- How lending changed after 2008
- Lending highlight: Kabbage offers loans in Spain with Yodlee’s Aggregation API
- What it means for consumers
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- Figure 9: Perception of difficulty in building a credit score, by generation, March 2016
Industry Perspective on Lending – Akouba
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- Lending, the final digitalization frontier
- Finance and the changing technology landscape
- What it means for consumers
Industry Perspective on Cybersecurity – WallScott Security Solutions and Covenant Security Solutions
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- The changing face of security and what it means for finance
- Cybersecurity Highlight: Covenant Security Solutions
- What it Means for Consumers
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- Figure 10: Consumers’ trust and satisfaction with financial services, March 2016
What’s Next?
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- FinTech to face growing pains with integration
- The arms race of algorithms
The Consumer – What You Need to Know
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- Omnichannel reaches the finance sector
- Awareness for FinTech is low
- Consumers cautious about spending
- Mobile payment is the future for one-fourth of consumers
Methods of Interacting with Financial Services
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- Traditional touchpoints are still important, but change is coming
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- Figure 11: Methods of interacting with financial services, March 2016
- Personal engagement still important for younger consumers
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- Figure 12: Methods of interacting with financial services, by age, March 2016
- Hispanics a key audience for mobile financial services
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- Figure 13: Methods of interacting with financial services, by age, March 2016
Consumers’ Relationships with Financial Services
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- High level of satisfaction and trust in traditional financial services
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- Figure 14: consumers’ trust and satisfaction with financial services, March 2016
- Younger consumers still want help with money management
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- Figure 15: Consumers’ interest in advice from financial services providers, by age, March 2016
- Desire for alternatives to banks rises with income
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- Figure 16: Consumers’ interest in advice from financial services providers, by household income, March 2016
- Fewer Blacks invest than are interested
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- Figure 17: Consumers’ interest in advice from financial services providers, by race/Hispanic origin, March 2016
Consumers’ Perceptions of How They Spend Money
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- Most consumers are cautious about spending money
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- Figure 18: Perceptions regarding spending money, March 2016
- Urban consumers more optimistic about spending
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- Figure 19: Perceptions regarding spending money, by type of living area March 2016
- Hispanics show heightened tendency toward aspirational spending
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- Figure 20: Perceptions regarding spending money, by Hispanic origin, March 2016
Usage and Awareness of FinTech Services
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- Minority of consumers aware of FinTech services
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- Figure 21: Knowledge and usage of FinTech services, March 2016
- Usage and interest gap in mobile payment among older consumers
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- Figure 22: Knowledge and usage of mobile payment, by age, March 2016
- FinTech shows limited reach outside California and New York
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- Figure 23: Usage and interest in FinTech services, by home state, March 2016
Attitudes toward Traditional Financial Services
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- Entering payment information online still cumbersome
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- Figure 24: Consumer frustration with online payment information, by gender and age, March 2016
- Could retail do more to protect payment information?
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- Figure 25: Consumers trust in stores to protect payment information, by age, March 2016
- Parents a key audience for alternate credit
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- Figure 26: Interest in lower-interest credit, by parental status, March 2016
- Retail adoption a barrier for mobile payment
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- Figure 27: Interest in greater mobile payment adoption, by household income, March 2016
Attitudes toward Financial Services and Technology
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- The mobile payment future
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- Figure 28: interest in greater mobile payment adoption, by household income, March 2016
- Younger consumers ready for technology-driven finance advice
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- Figure 29: Interest in greater mobile payment adoption, by household income, March 2016
- Perception of tech-savviness important for higher-income households
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- Figure 30: Interest in greater mobile payment adoption, by household income, March 2016
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- FinTech Industry Perspectives
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Consumer
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- Hispanics’ financial outlook
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- Figure 31: Hispanics’ past 12 months financial review – Net result (% better off minus % worse off), by household income, October 2014-December 2015
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- Figure 32: Hispanics’ next 12 months financial outlook – Net result (% better off minus % worse off), by household income, October 2014-December 2015
- Ownership of financial products
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- Figure 33: Ownership of financial products, by household income, March 2016
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- Figure 34: Ownership of financial products, by household income, March 2016 (cont.)
- Knowledge of FinTech Services
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- Figure 35: Knowledge and usage of FinTech Services, March 2016
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