Author: Mintel Group Ltd.
Last saved by: HTTP server

Consumer Attitudes Toward FinTech - US - May 2016

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Consumer awareness for new financial tech is low
Figure 1: Knowledge and usage of FinTech services, March 2016
Majority of consumers satisfied with current financial services
Figure 2: Consumers’ trust and satisfaction with financial services, March 2016
Traditional touchpoints most preferred for engaging with financial services
Figure 3: Methods of interacting with financial services, March 2016
Consumers trust traditional finance, but security threats are growing
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
Figure 5: Interest in advice from financial services providers, by age, March 2016
Tap into consumer desire to be strategic spenders
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
Regulators turning their attention to the FinTech market
Consumer confidence stable
MARKET FACTORS
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
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?
How FinTech is changing financial services
INDUSTRY PERSPECTIVE ON USER EXPERIENCE – SYNCHRONY FINANCIAL
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
Figure 7: Knowledge and usage of FinTech services, March 2016
What it means for consumers
Figure 8: Methods of interacting with financial services, by age, March 2016
INDUSTRY PERSPECTIVE ON LENDING – ENVESTNET | YODLEE
How lending changed after 2008
Lending highlight:  Kabbage offers loans in Spain with Yodlee’s Aggregation API
What it means for consumers
Figure 9: Perception of difficulty in building a credit score, by generation, March 2016
INDUSTRY PERSPECTIVE ON LENDING – AKOUBA
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
The changing face of security and what it means for finance
Cybersecurity Highlight: Covenant Security Solutions
What it Means for Consumers
Figure 10: Consumers’ trust and satisfaction with financial services, March 2016
WHAT’S NEXT?
FinTech to face growing pains with integration
The arms race of algorithms
THE CONSUMER – WHAT YOU NEED TO KNOW
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
Traditional touchpoints are still important, but change is coming
Figure 11: Methods of interacting with financial services, March 2016
Personal engagement still important for younger consumers
Figure 12: Methods of interacting with financial services, by age, March 2016
Hispanics a key audience for mobile financial services
Figure 13: Methods of interacting with financial services, by age, March 2016
CONSUMERS’ RELATIONSHIPS WITH FINANCIAL SERVICES
High level of satisfaction and trust in traditional financial services
Figure 14: consumers’ trust and satisfaction with financial services, March 2016
Younger consumers still want help with money management
Figure 15: Consumers’ interest in advice from financial services providers, by age, March 2016
Desire for alternatives to banks rises with income
Figure 16: Consumers’ interest in advice from financial services providers, by household income, March 2016
Fewer Blacks invest than are interested
Figure 17: Consumers’ interest in advice from financial services providers, by race/Hispanic origin, March 2016
CONSUMERS’ PERCEPTIONS OF HOW THEY SPEND MONEY
Most consumers are cautious about spending money
Figure 18: Perceptions regarding spending money, March 2016
Urban consumers more optimistic about spending
Figure 19: Perceptions regarding spending money, by type of living area March 2016
Hispanics show heightened tendency toward aspirational spending
Figure 20: Perceptions regarding spending money, by Hispanic origin, March 2016
USAGE AND AWARENESS OF FINTECH SERVICES
Minority of consumers aware of FinTech services
Figure 21: Knowledge and usage of FinTech services, March 2016
Usage and interest gap in mobile payment among older consumers
Figure 22: Knowledge and usage of mobile payment, by age, March 2016
FinTech shows limited reach outside California and New York
Figure 23: Usage and interest in FinTech services, by home state, March 2016
ATTITUDES TOWARD TRADITIONAL FINANCIAL SERVICES
Entering payment information online still cumbersome
Figure 24: Consumer frustration with online payment information, by gender and age, March 2016
Could retail do more to protect payment information?
Figure 25: Consumers trust in stores to protect payment information, by age, March 2016
Parents a key audience for alternate credit
Figure 26: Interest in lower-interest credit, by parental status, March 2016
Retail adoption a barrier for mobile payment
Figure 27: Interest in greater mobile payment adoption, by household income, March 2016
ATTITUDES TOWARD FINANCIAL SERVICES AND TECHNOLOGY
The mobile payment future
Figure 28: interest in greater mobile payment adoption, by household income, March 2016
Younger consumers ready for technology-driven finance advice
Figure 29: Interest in greater mobile payment adoption, by household income, March 2016
Perception of tech-savviness important for higher-income households
Figure 30: Interest in greater mobile payment adoption, by household income, March 2016
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
FinTech Industry Perspectives
Abbreviations and terms
Abbreviations
Terms
APPENDIX – CONSUMER
Hispanics’ financial outlook
Figure 31: Hispanics’ past 12 months financial review – Net result (% better off minus % worse off), by household income, October 2014-December 2015
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
Figure 33: Ownership of financial products, by household income, March 2016
Figure 34: Ownership of financial products, by household income, March 2016 (cont.)
Knowledge of FinTech Services
Figure 35: Knowledge and usage of FinTech Services, March 2016

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.