Table of Contents
Executive Summary
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- Overview
- The issues
- Trust in the financial services industry remains below 50%
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- Figure 1: Trust in financial services industry, June 2018
- 45-54 demographic is the least engaged with financial services providers
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- Figure 2: Consumers who do not interact with financial services companies, by age, June 2018
- Consumers not ready to embrace future
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- Figure 3: Desired fintech features, June 2018
- The opportunities
- Most consumers proactively monitor their finances
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- Figure 4: Proactively monitoring finances, by self-reported credit score, June 2018
- Comfort with fintech’s security has grown
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- Figure 5: Comfort level with financial security and technology, June 2018
- What it means
The Market – What You Need to Know
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- Majority of adults own multiple devices
- Personal lending skyrockets
Market Breakdown
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- Financial product ownership
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- Figure 6: Financial product ownership, June 2018
- Majority of adults own more than one tech device
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- Figure 7: Number of mobile devices or laptops owned, May 2018
Market Factors
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- Branch locations plateau, as number of banks continues to decline
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- Figure 8: Number of FDIC-insured commercial branches and institutions, 2006-16
- Personal lending skyrockets
- Aging of US population
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- Figure 9: Population by age, 2013-23
Key Players – What You Need to Know
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- Point-of-sale lending
- Apple’s fintech success
- Fintechs hesitant to embrace regulation
- Alternative ways to measure credit worthiness
What’s Working?
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- Point-of-sale lending
- AmEx “Pay It Plan It”
- Affirm and Afterpay
- Apple’s fintech success
What’s Struggling?
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- Voice access technology still struggling to catch on
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- Figure 10: Lack of interest in using voice technology to access account, by age and gender, June 2018
- Fintechs hesitant to embrace regulation
What’s Next?
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- Big brands buy up or partner with fintech startups
- Alternative ways to measure credit worthiness
The Consumer – What You Need to Know
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- Most see a need for in-person financial transactions
- Bank website is most frequently used channel
- Consumers most interested in using biometrics to access financial accounts
- Most consumers proactively monitor their finances
- Amazon, Google not heavy competition just yet
- Consumers not ready to embrace financial future
Attitudes toward Financial Technologies
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- Most see a need, now and in the future, for in-person financial transactions
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- Figure 11: Opinion on the need for in-person financial transactions, June 2018
- Trust in financial services industry remains below 50%
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- Figure 12: Trust in financial services industry, June 2018
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- Figure 13: Allstate video, “Allstate Commercials: Park Road America,” July 2018
- Trust particularly low in rural areas
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- Figure 14: Trust in financial services industry, by area of residence, June 2018
- Comfort with fintech’s security has grown
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- Figure 15: Comfort level with financial security and technology, June 2018
- Consumers are open to alternative credit scoring
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- Figure 16: Opinions on alternative credit scoring, by generation and by race and ethnicity, June 2018
- Amazon, Google not heavy competition just yet
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- Figure 17: Interest in opening financial account from Amazon or Google, by age and gender, June 2018
Interacting with Financial Brands
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- Bank website is most frequently used channel
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- Figure 18: Most frequently used channels to interact with financial services companies, June 2018
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- Figure 19: HomeStreet Bank website launch email, February 2018
- Younger consumers prefer in-person visit, mobile app over website
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- Figure 20: Most frequently used channels to interact with financial services companies, by age, June 2018
- 45-54 demographic least engaged with financial services providers
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- Figure 21: Consumers who do not interact with financial services companies, by age, June 2018
Interest in Using Fintech
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- Consumers most interested in using biometrics to access financial accounts
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- Figure 22: Familiarity with and interest in biometrics, June 2018
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- Figure 23: Bank of America fraud protection email, August 2018
- Nearly four in 10 have not heard of roboadvisors
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- Figure 24: Knowledge of roboadvisors, by household income, June 2018
- Cryptocurrency hasn’t hit the mainstream yet
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- Figure 25: Familiarity with and interest in cryptocurrency, June 2018
- Young, upper middle class most interested in PFM
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- Figure 26: Interest in personal financial management tools, by age and household income, June 2018
Financial Behaviors
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- Less than 10% have used a financial virtual assistant
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- Figure 27: Use of personal assistant from financial services company, by generation, June 2018
- Most consumers proactively monitor their finances
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- Figure 28: Proactively monitoring finances, by self-reported credit score, June 2018
- Some consumers are drifting away from their local branch
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- Figure 29: Preference for not visiting branch, by age and race and ethnicity, June 2018
- Younger women more likely to conduct financial transactions via mobile
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- Figure 30: Conducting financial transactions online or through mobile, by age and gender, June 2018
- Older consumers still reluctant to use mobile apps
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- Figure 31: Conducting financial transactions online or through mobile, by age and gender, June 2018
- Most consumers aren’t paying attention to new financial technologies
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- Figure 32: Conducting financial transactions online or through mobile, by parental status, June 2018
Ideal Fintech Features
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- Consumers not ready to embrace future
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- Figure 33: Desired fintech features, June 2018
- Men are most open to proactive account notifications
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- Figure 34: Interest in proactive account notifications, by age and gender, June 2018
- Meet customers where they are in terms of lifestage
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- Figure 35: Desired fintech features, by age, June 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
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