Fiserv study shows use of digital wallets on the rise and fintechs key to consumers’ financial experience
BROOKFIELD, Wisconsin – (COMMERCIAL THREAD) – With consumers leveraging digital tools more than ever, fintechs are now an integral part of consumers’ financial experience, according to the latest Consumer Expectations and Experiences Trends survey from Fiserv, Inc. (NASDAQ: FISV ), one of the world’s leading providers of financial services technology. solutions. Fintechs play a key role in money management, often fulfilling a need for specific capabilities such as checking credit scores and buying cryptocurrency.
Details of Expectations & Experiences: Fintech Adoption can be downloaded at fisv.co/ExpectationsandExperiencesFintech2021.
“Consumers are regularly integrating third-party applications into their financial experience, a trend driven by savvy tech and Gen Z users,” said Sunil Sachdev, Fintech Manager at Fiserv. “People have high expectations for their digital experiences, looking for innovative and intuitive solutions. With changing consumer demands, more and more financial institutions are integrating and partnering with fintechs to deliver the services customers want through their trusted banking relationship.
Improving the way consumers manage their finances
A notable survey result indicates that digital wallets have made their way into the mainstream. Almost seven in ten consumers surveyed (68%) say they have used a digital wallet in the past 12 months, up from 58% in 2020 and 51% in 2019. Among respondents, 46% have used a digital wallet from a fintech .
Overall, awareness of fintech is high and many consumers are considering third-party services to find the solutions they need.
Consumers are very familiar with fintech services for payments (100%), budgeting (94%), investments (82%) and lending (81%). They are a little less familiar with newer services like crypto apps (49%). The use of fintech apps varies widely, with consumers taking advantage of more established payment options (86%) and budgeting (43%) compared to newer niche services.
It seems consumers are relying on fintechs to fill the gaps in services their financial institutions cannot currently provide, such as investing money, checking their credit rating, or buying and selling cryptocurrencies.
As interest in cryptocurrency continues to grow, consumers are hungry for solutions from trusted sources. While only 10% of consumers have used a third-party crypto app, more than half (61%) of Gen Z and Gen Y want their bank or credit union to allow them to hold cryptocurrency. Financial institutions can strengthen their relationships with these consumers by working in partnership with Fiserv and fintechs like NYDIG to integrate cryptocurrency into their offerings.
Digital banking is gaining momentum
For the first time, mobile has overtaken branch offices as the preferred method for consumers to interact with their major financial organizations. Online banking took first place with 34%, while mobile jumped to second place at 30%, from 22% in 2019, showing that digital money management habits are here to stay.
Unsurprisingly, preferences are influenced by age, with Gen Z and Gen Y preferring mobile interactions (47%) both online (27%) and in-branch (13%).
“The continued evolution towards digital channels – and more specifically mobile channels – offers a clear vision for the future of banking and related services,” said Whitney Stewart, president of digital channels at Fiserv. “Financial institutions that harness technology to meet the daily needs of consumers and build long-term personalized relationships will continue to attract customers across generations. ”
One of the oldest surveys of its kind, Expectations & Experiences provides insight into the financial behaviors and attitudes of consumers. The latest survey was conducted online in the United States by The Harris Poll from August 9 to 31, 2021. A total of 3,033 interviews were conducted with American adults aged 18 and over who met the following criteria: A household member currently has a checking account with a bank, credit union, brokerage firm, or other financial organization and has used their checking account to pay a bill or make a purchase in the past 30 days.
In a world that is changing faster than ever, Fiserv helps clients deliver solutions that match the way people live and work today – financial services at the pace of life. Learn more at fiserv.com.
Fiserv, Inc. (NASDAQ: FISV) aspires to move money and information in a way that moves the world. As a global leader in payments and fintech, the company helps its clients achieve the best results through a commitment to innovation and excellence in areas such as account processing and digital banking solutions; card issuers processing and network services; Payments; e-commerce; acquisition and processing of traders; and the Clover® cloud-based point of sale solution. Fiserv is a member of the S&P 500® Index and the FORTUNE® 500, and is one of FORTUNE Magazine’s World’s Most Admired Companies. Visit fiserv.com and follow social media for more information and the latest company news.