2021
9
US Consumer Attitudes towards Fintech Market Report 2021
2021-11-20T03:21:39+00:00
OX1045633
3695
145419
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Report
en_GB
“The pandemic has highlighted the various ways fintech has infiltrated the lives of many, from the shift to contactless payments to providing those that lack credit scores with credit and…

US Consumer Attitudes towards Fintech Market Report 2021

£ 3,695 (Excl.Tax)

Description

Providing the most comprehensive and up-to-date information and analysis of Consumer Attitudes toward Fintech in the US, and how those attitudes towards Fintech are changing.  This market report also covers  industry trends for US Consumer Attitudes toward Fintech.

Current Fintech Market Landscape and Industry Trends

Fintech, or financial technology, can be defined as the integration of technological advancements with financial services offerings, ranging from mobile banking and robo-advisors to cryptocurrency and blockchain. Fintech is the main enabler of more efficient banking experiences, securer financial transactions, stronger engagement with finances through mobile apps, and even providing greater access to investing through low-cost robo-advisors. Fintech has also served to make the financial services industry a more inclusive and fairer environment, offering broader access to credit and providing meaningful financial products to disadvantaged members of society.

Shifting US Consumer Attitudes toward Fintech

Fintech companies have long conveyed a brand image that is transparent and customer-centric in attempts to win trust and brand recognition. Both of these will continue being a challenge that could hinder the growth of these companies in this space moving forward, especially as market leaders like PayPal, Amazon, and Apple continue their rapid expansion into financial services. Competition in this space is growing fiercer, but fintechs looking to other avenues like sports to enhance their brand awareness and recognition at least shows that the fire to remain competitive is still there.

Read on to discover more about the US Consumer Attitudes toward Fintech, read our US Banking Experience Market Report 2021, or take a look at our other Banking and Money Transmission Market research reports.

Quickly understand

  • The impact of COVID-19 on consumer behavior and attitudes toward fintech
  • Consumer usage of financial technologies in everyday life
  • Attitudes toward security and personal finances
  • Willingness to bank with non-traditional providers and the reasons why consumers would consider it
  • FinTech Industry Trends

Covered in this report

Brands include: Amazon, Klarna, Huntington, Standby Cash, Chase, Wells Fargo, TomoCredit, Greenwood, Afterpay, PayPal, Walmart, Target, American Express, MasterCard, Daylight, OnJuno, Chime, Wealthsimple, Start Path, Affirm, Citi, LendingTree, Laybuy, Alipay, WeChat, Venmo, Apple Pay, Starbucks, Google Wallet, Kroger, BMO, Morgan Stanley, Merrill Lynch, Acorns, Synchrony, Varo, Capital One.

Expert analysis from a specialist in the field

This report, written by Amr Hamdi, a leading analyst in the Finance sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The pandemic has highlighted the various ways fintech has infiltrated the lives of many, from the shift to contactless payments to providing those that lack credit scores with credit and offering flexible financing options during an economic downturn – just a few ways financial services have continued to evolve due to fintech. Fintech companies’ embodiment of a customer-centric, transparent and digital-first approach will have helped enhance awareness about the sector during the pandemic – something they have long struggled with. As tech behemoths like PayPal and Apple continue expanding into financial services, fintechs and legacy FIs will continue to contend with a plethora of competitors eager to steal market share.
Amr Hamdi, Finance Analyst
Amr Hamdi
Finance Analyst

Table of Contents

  1. Overview

    • What you need to know
    • This Report looks at the following areas
    • Economic and other assumptions
    • COVID-19: US context
  2. Executive Summary

    • Top takeaways
    • The pandemic has put in-person interactions on the back burner as mobile app adoption has grown
      • Figure 1: Interaction with financial services companies, 2019 and 2021
    • Personalization matters
      • Figure 2: Importance of having a personalized banking experience, by age, 2021
    • Fintechs have innovated a historically rigid credit scoring system, as legacy FIs aim to follow suit to improve financial inclusion
      • Figure 3: Attitudes toward credit scores, by self-reported credit score, 2021
    • Market overview
    • Impact of COVID-19 on consumer attitudes toward fintech
      • Figure 4: Short-, medium- and long-term impact of COVID-19 on consumer attitudes toward fintech, 2021
    • Opportunities and challenges
    • Financial services landscape continues to heat up
    • Rise in digital banking can be a chance to highlight and ease security concerns
  3. The Market – Key Takeaways

    • Consumer trust in fintech falters, but efforts to increase brand awareness could lead to more trust moving forward
    • PayPal shakes up crypto retail payments with Checkout with Crypto
    • MasterCard launches Start Path, a program aimed at supporting minority-owned fintech startups
    • Impact of COVID-19 on consumer attitudes toward fintech
  4. Market Factors

    • Chime settles agreement with California regulators to stop using “bank” in its marketing
      • Figure 5: Chime account closure email, 2021
    • Consumer trust in fintech falters, but efforts to increase brand awareness could lead to more trust moving forward
      • Figure 6: Trust in traditional vs non-traditional providers, 2021
      • Figure 7: Wealthsimple investing masterclass, 2021
    • PayPal shakes up crypto retail payments with Checkout with Crypto
      • Figure 8: Crypto goes mainstream with PayPal email, 2021
    • MasterCard launches Start Path, a program aimed at supporting minority-owned fintech startups
  5. Companies and Brands – Key Takeaways

    • Affirm set to add crypto, debit offerings to expand into a financial services powerhouse
    • Square teams up with TikTok to capture the merchant market and grow Square Online
    • Klarna spotlights outdated traditional credit models with its “Old Credit is History” campaign
      • Figure 9: Klarna‘s Old Credit is History campaign, 2021
  6. Competitive Strategies

    • Fintech brands continue to find their footing in the sports world
      • Figure 10: Dallas Mavericks and Chime partnership, 2020
    • Rise of the “super app”
      • Figure 11: Alipay app store preview, 2021
      • Figure 12: iPhone home screen, 2021
      • Figure 13: PayPal super app, 2021
  7. Market Opportunities

    • Leverage mobile wallets as channels to foster engagement and loyalty
      • Figure 14: Starbucks push notification, 2020
      • Figure 15: Kroger MasterCard benefits, 2021
      • Figure 16: Opinions toward mobile wallets, by generation, 2021
    • Banking the underbanked: immigrants
      • Figure 17: American Express US newcomers website, 2021
      • Figure 18: BMO NewStart program, 2021
      • Figure 19: BMO NewStart mobile ad, 2021
      • Figure 20: TomoCredit, 2021
  8. The Consumer – Key Takeaways

    • Mobile app adoption grew as in-person banking was limited due to the pandemic
    • Robo-advisors may be gaining acceptance, but human advisors will stay in demand
    • Interest in banking with PayPal and Amazon was the highest, while fintechs failed to spark meaningful interest
  9. Interacting with Financial Institutions

    • Mobile app adoption grew as in-person banking was limited due to the pandemic
      • Figure 21: Interaction with financial services companies, 2019 and 2021
    • Older generations embraced the digital shift spurred by the pandemic, and will continue doing so moving forward
      • Figure 22: Interaction with financial services companies through mobile app, by generation, 2019 and 2021
  10. Usage of Fintech in Everyday Life

    • Millennials are the highest adopters of buy now, pay later financing
      • Figure 23: Use of buy now, pay later financing, by generation, 2021
    • High-income households more likely to use financing options through their credit cards
      • Figure 24: Use of buy now, pay later financing, by income, 2021
    • Cryptocurrency continues to gain acceptance as a legitimate investment asset
      • Figure 25: Use of cryptocurrency, by age, 2019 and 2021
    • High net worth consumers significantly increased their exposure to cryptocurrency in the past two years
      • Figure 26: Use of cryptocurrency, by income, 2019 and 2021
    • Financial wellness tools are widespread, and those that would benefit the most are strongly interested in using them
      • Figure 27: Use of financial management tools, by financial situation, 2021
    • Robo-advisors may be gaining acceptance, but human advisors will stay in demand
      • Figure 28: Use of robo-advisor, by generation, 2019 and 2021
  11. Fintech and Security

    • Willingness to share personal data with FIs remains low, even in exchange for a better experience
      • Figure 29: Openness to share personal data with financial institutions, by generation, 2021
    • Being more transparent could yield higher trust from customers anxious about security risks
      • Figure 30: Attitudes toward security practices within the financial services industry, 2021
  12. Attitudes toward Personal Finances

    • 42% expect to use cash less often moving forward, as touch-free payments continue gaining adoption
      • Figure 31: Future payment preferences, by generation, 2021
    • Human financial advisors remain the preference of choice for 22% of people, even if it means paying a premium
      • Figure 32: Preference for human financial advisor vs robo-advisor, by income, 2021
    • As cryptocurrency gains acceptance, more than a third would use it for everyday purchases
      • Figure 33: Openness toward using cryptocurrency, by generation, 2021
  13. Willingness to Bank with Non-Banks

    • Interest in banking with PayPal and Amazon was the highest, while fintechs failed to spark meaningful interest
      • Figure 34: Willingness to bank with non-banks, 2021
    • Familiarity and low costs are the main drivers of interest
      • Figure 35: Reasons for considering a non-bank as a provider, 2021
  14. Attitudes toward Fintech and Finance

    • Despite being more digitally native, younger adults are the most uncomfortable managing their finances through mobile or computer
      • Figure 36: Comfort levels with security in finances and transactions, by age, 2021
    • Six in 10 consumers want apps that improve financial health and management
      • Figure 37: Attitudes toward digital finance apps, by generation, 2021
  15. Appendix – Data Sources and Abbreviations

    • Data sources
    • Consumer survey data
    • Marketing creative
    • Abbreviations and terms
    • Abbreviations

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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