Consumer Attitudes toward Fintech - US - September 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
The issues
Trust in the financial services industry remains below 50%
Figure 1: Trust in financial services industry, June 2018
45-54 demographic is the least engaged with financial services providers
Figure 2: Consumers who do not interact with financial services companies, by age, June 2018
Consumers not ready to embrace future
Figure 3: Desired fintech features, June 2018
The opportunities
Most consumers proactively monitor their finances
Figure 4: Proactively monitoring finances, by self-reported credit score, June 2018
Comfort with fintech’s security has grown
Figure 5: Comfort level with financial security and technology, June 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Majority of adults own multiple devices
Personal lending skyrockets
MARKET BREAKDOWN
Financial product ownership
Figure 6: Financial product ownership, June 2018
Majority of adults own more than one tech device
Figure 7: Number of mobile devices or laptops owned, May 2018
MARKET FACTORS 
Branch locations plateau, as number of banks continues to decline
Figure 8: Number of FDIC-insured commercial branches and institutions, 2006-16
Personal lending skyrockets
Aging of US population
Figure 9: Population by age, 2013-23
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Point-of-sale lending
Apple’s fintech success
Fintechs hesitant to embrace regulation
Alternative ways to measure credit worthiness
WHAT’S WORKING?
Point-of-sale lending
AmEx “Pay It Plan It”
Affirm and Afterpay
Apple’s fintech success
WHAT’S STRUGGLING?
Voice access technology still struggling to catch on
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?
Big brands buy up or partner with fintech startups
Alternative ways to measure credit worthiness
THE CONSUMER – WHAT YOU NEED TO KNOW 
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
Most see a need, now and in the future, for in-person financial transactions
Figure 11: Opinion on the need for in-person financial transactions, June 2018
Trust in financial services industry remains below 50%
Figure 12: Trust in financial services industry, June 2018
Figure 13: Allstate video, “Allstate Commercials: Park Road America,” July 2018
Trust particularly low in rural areas
Figure 14: Trust in financial services industry, by area of residence, June 2018
Comfort with fintech’s security has grown
Figure 15: Comfort level with financial security and technology, June 2018
Consumers are open to alternative credit scoring
Figure 16: Opinions on alternative credit scoring, by generation and by race and ethnicity, June 2018
Amazon, Google not heavy competition just yet
Figure 17: Interest in opening financial account from Amazon or Google, by age and gender, June 2018
INTERACTING WITH FINANCIAL BRANDS
Bank website is most frequently used channel
Figure 18: Most frequently used channels to interact with financial services companies, June 2018
Figure 19: HomeStreet Bank website launch email, February 2018
Younger consumers prefer in-person visit, mobile app over website
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
Figure 21: Consumers who do not interact with financial services companies, by age, June 2018
INTEREST IN USING FINTECH
Consumers most interested in using biometrics to access financial accounts
Figure 22: Familiarity with and interest in biometrics, June 2018
Figure 23: Bank of America fraud protection email, August 2018
Nearly four in 10 have not heard of roboadvisors
Figure 24: Knowledge of roboadvisors, by household income, June 2018
Cryptocurrency hasn’t hit the mainstream yet
Figure 25: Familiarity with and interest in cryptocurrency, June 2018
Young, upper middle class most interested in PFM
Figure 26: Interest in personal financial management tools, by age and household income, June 2018
FINANCIAL BEHAVIORS
Less than 10% have used a financial virtual assistant
Figure 27: Use of personal assistant from financial services company, by generation, June 2018
Most consumers proactively monitor their finances
Figure 28: Proactively monitoring finances, by self-reported credit score, June 2018
Some consumers are drifting away from their local branch
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
Figure 30: Conducting financial transactions online or through mobile, by age and gender, June 2018
Older consumers still reluctant to use mobile apps
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
Figure 32: Conducting financial transactions online or through mobile, by parental status, June 2018
IDEAL FINTECH FEATURES
Consumers not ready to embrace future
Figure 33: Desired fintech features, June 2018
Men are most open to proactive account notifications
Figure 34: Interest in proactive account notifications, by age and gender, June 2018
Meet customers where they are in terms of lifestage
Figure 35: Desired fintech features, by age, June 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms