Table of Contents
Executive Summary
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- Market Philosophy
- Key findings
- Tech isn’t an issue: people love their phones
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- Figure 1: Proportion of US that owns smartphone and time spent on device, by generation, May 2019
- Most even like the Fintech they’ve tried (but they haven’t tried much)
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- Figure 2: Use of and opinion toward various Fintech offerings, August 2019
- But people are not sold on Big Tech in finance
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- Figure 3: Interest in financial account with tech company, August 2019
- And security needs to be front and center
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- Figure 4: Attitudes toward security in finance, by generation, August 2019
- What it means and what’s next
The Market – What You Need to Know
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- What is Fintech?
- Roughly 1 in 8 smartphone owners are logging 30+ hours of screen time per week
- We’re bearish on Bitcoin, bullish on blockchain
Market Size and Scope
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- What is Fintech?
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- Figure 5: Merriam-Webster dictionary entry for Fintech, added September 2018
- How big is the Fintech market?
- Smartphones: a suitable Fintech indicator
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- Figure 6: Proportion of US that owns smartphone and time spent on device, by generation, May 2019
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- Figure 7: Mobile wallet adoption, by Age, July 2019
Market Perspective: Blockchain & Cryptocurrency
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- Blockchain is big business
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- Figure 8: Companies with stated blockchain projects or initiatives, October 2019
- Facebook’s Libra: global digital token, or boardroom bust?
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- Figure 9: Libra association founding members, 2019
- Cryptocurrency markets are mainstream
- NYSE owner Intercontinental Exchange launches Bitcoin futures
- Binance introduces US digital assets marketplace
- JPMorgan’s Interbank Information Network has 345 banks on board the Ethereum blockchain
- International use cases
- Venezuela's foray into crypto
- Crypto is opening up Cuba
- The Philippines offers Bitcoin at 7-Eleven
- When we finally colonize space, blockchain will be waiting for us
Key Players – What You Need to Know
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- The Fintech playing field has some surprising contestants
- Fintech’s ugly cousin: 1950s tech still runs too much of the finance sector
- Say “Fintech” while you can; no one will be saying it in 10 years
Who’s in the Game?
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- The Fintech space includes more companies than you might think
- Is Domino’s a Fintech?
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- Figure 10: Domino’s France Bitcoin giveaway tweet, September 6, 2019
- Is Uber a Fintech?
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- Figure 11: Uber Cash email alert, September 2019
- Figure 12: Uber Visa, acquisition email, July 17, 2019
- Is NBA player Spencer Dinwiddie a Fintech?
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- Figure 13: Spencer Dinwiddie tweet, September 6, 2019
- How many Fintechs are out there?
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- Figure 14: SoFI Invest Stock Bits, October 2019
- Figure 15: Investing Apps, October 2019
What’s Struggling?
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- COBOL system is a dangerous anachronism
- Big Tech in finance: okay in theory, but not in practice
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- Figure 16: Interest in financial account with tech company, by generation, August 2019
- Security and data privacy issues demand attention
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- Figure 17: Attitudes toward security in finance, by generation, August 2019
What to Watch?
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- Payments with a wave of the hand
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- Figure 18: Token Ring homepage, October 2019
- Delphia is trying to help consumers monetize their data
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- Figure 19: Delphia homepage, October 2019
- How much should a credit score take into account?
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- Figure 20: Views on Fintech and obtaining credit, by generation, August 2019
- Hot Take: Fintech is a marketing flash in the pan
The Consumer – What You Need to Know
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- Company website via desktop computer is the most common way people interact with their financial providers
- People like the Fintech they’ve used, but most aren’t using much
- Most consumers aren’t eager to see Big Tech in Fintech, but young men are much more receptive
- Security needs to be in focus
- Consumer attitudes and forecasts are all over the map
Interacting with Financial Companies
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- Sitting down at a computer is the most common way consumers engage with financial brands
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- Figure 21: Interaction with financial services companies, by channel, ranked, August 2019
- Desktop vs mobile app = old vs young
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- Figure 22: Interaction with financial services companies, desktop versus mobile app, by age, August 2019
- Young consumers hate phone calls, but Gen Z sees value of in-person interactions
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- Figure 23: Interaction with financial services companies, In-person versus phone, by generation, August 2019
- Different strokes for different folks: race and ethnicity affect channel preferences
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- Figure 24: Interaction with financial services companies, by channel, by race & ethnicity, August 2019
The Fintech in Consumers’ Lives
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- Across the board, those who have tried Fintech offerings like them (but most haven’t tried them)
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- Figure 25: Use of and opinion toward various Fintech offerings, August 2019
- Personal financial management (PFM) tools: women may be more receptive
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- Figure 26: Use of and opinion toward personal financial management tools, by gender, August 2019
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- Figure 27: Budgeting habits, by generation, April 2019
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- Figure 28: Capital One Eno, customer service email, September 2019
- Virtual assistants: ¿Una oportunidad para los consumidores hispanos?
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- Figure 29: Use of and opinion toward personal financial management tools, by Hispanic origin, August 2019
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- Figure 30: Preference for avoiding branches, and changes in habits, by household income, August 2019
Do Consumers Want Big Tech in Fintech?
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- Bank of Amazon? Most consumers say no thanks
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- Figure 31: Interest in financial account with tech company, by generation, August 2019
- Men under 55 are Big Tech’s target audience
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- Figure 32: Interest in financial account with tech company, by gender and age, August 2019
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- Figure 33: Interest in Apple Card and Facebook Libra, by gender, August 2019
- Some think Big Tech can be just as successful in finance; others think they shouldn’t be allowed in the arena
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- Figure 34: Interest in financial account with tech company, by gender and age, August 2019
- Parents value convenience and ease
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- Figure 35: Willingness to open financial account with tech company – CHAID – Tree output, August 2019
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- Figure 36: Willingness to open financial account with tech company – CHAID – Table output, August 2019
Fintech and Security
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- Trust is a big issue, and consumers want to know what’s happening with their data
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- Figure 37: Attitudes toward security in finance, August 2019
- Opinions about tech’s influence on security vary with age
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- Figure 38: Attitudes toward security in finance, by generation, August 2019
- People have heard enough horror stories to be cautious
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- Figure 39: Familiarity with personal information mishaps, by generation, May 2019
- Mobile users are more likely to share their data
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- Figure 40: Attitudes toward security in finance, by interaction preference and gender, August 2019
Attitudes toward Fintech and Finance
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- Wealthier consumers may see more upside in Fintech
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- Figure 41: Preference for avoiding branches, and changes in habits, by household income, August 2019
- Old school values die hard
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- Figure 42: Opinions on in-person and digital financial transactions, by generation, August 2019
- Young people think Fintech should be used for good
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- Figure 43: Attitudes toward Fintech, credit, and society, by generation, August 2019
- Consumers predict cash and cards on the way out, crypto on the rise
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- Figure 44: Consumer predictions about credit cards, cash, and cryptocurrency, by generation, August 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- CHAID Methodology
- Behavioral data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
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