Why banks can’t underestimate consumers’ growing comfort with fintechs
A growing number of consumers interested in the latest and greatest in financial services are turning to fintechs and digital banks. Traditional banks and credit unions must innovate to keep up and to retain their younger customers — who are the ones most interested in features like early access to paychecks and automated savings programs. A survey of 4,000 consumers offers insights into these trends and more.
Consumers may still see a bank or credit union as their primary financial home. However, they are increasingly willing to rely on nonbank providers for financial services and to move at least some of their business to a digital bank, according to research by Marqeta.
Americans, especially, are open to using financial services from other types of companies, such as a tech firm, retailer or social media platform. They have warmed to the idea fast too, with 56% of U.S. consumers saying they would be willing to do so, a 10% lift from 2022, the research found.
This trend is also evident in the United Kingdom and Australia but is more pronounced in the United States.
Consumers are unlikely to abandon traditional providers, says Rachel Huber, market intelligence lead for Marqeta. But, she says, the days of getting everything from one financial provider are likely over.
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