Introduction

Financial technology (FinTech) is steadily gaining traction, with new technology and services becoming available every day. Blumberg Capital’s annual FinTech survey examined American attitudes towards traditional banking institutions, FinTech companies and new financial technologies. Contrary to popular belief that big banks and FinTech companies are locked in a zero sum battle, American consumers want the best of both.

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80%

want financial institutions to focus on helping the average consumer

76%</span >

worry about security with online banking and payment services

66%</span >

are looking for banks to provide technology beyond traditional
banking services

57%</span >

believe the days of going into a physical financial institution
are coming to an end

57%</span >

have a positive view of FinTech companies

80%

want financial institutions to focus on helping the average consumer

Banks, FinTech or Both?: Consumer Attitudes on Banks and FinTech

Consumers trust their banks, but want access to new technologies

Majority of Americans have a positive view of FinTech

Comparing 2016 to 2017

Two-thirds of Americans prefer to handle their financial dealings online

Majority believe the days of going into a physical financial institution for any reason are coming to an end

For half of Americans, banking needs to be a mix of traditional and new technologies and
services

Almost one third of respondents claim nothing could influence them to leave their bank

A majority of Americans agree that traditional financial institutions do not evolve fast
enough to keep up with consumer needs and expectations

FinTech for Inclusion: How New Technologies Democratize Financial Services

Americans believe FinTech helps people gain more power and democratize financial services

FinTech provides services to make transactions Easily and less expensive

Financially underserved people (ex, those with low FICO scores, bad employment history, recent immigrants, etc.) need access to options for loans/credits outside of traditional banks

Trust Issues:
Security

Traditional banks are trustworthy and look out for customers’ financial needs

If new payment or investment technologies were offered by my existing bank I would trust
them more readily than those from new companies

I worry about security with some of the new online banking and payment services

I am not confident my financial institution keeps my information secure or private

Transparency

Almost three-quarters of Americans agree that their bank is transparent and they know how
much they pay in fees on their checking, savings, 401(k), mutual funds and other retirement
and investment accounts

Those 55 and older are more likely than those 18-29, 30-39 and 40-54 to say their bank is
transparent and they know how much they pay in fees on their accounts

 

Those with a household Income of $25,000-$49,999, $50,000-$74,999 and $75,000 or more are
more likely to say their bank is transparent and they know how much they pay in fees on
their account than those with a household income of less than $25,000

Over half of Americans agree they are often confused about the information provided by
financial institutions in billing, financial reporting and fee structure

Those 18-29, 30-39 and 40-54 are more likely than those 55 and older to say they are often
confused about the information provided by financial institutions in billing, financial
reporting and fee structures

Over four in five U.S. adults agree that financial advisors should be required to act as fiduciaries and give objective and fair financial advice

Despite confusion, Americans positive on blockchain and cryptocurrency

Less then half of Americans know what Bitcoin is and three in ten know how to store or invest their money in cryptocurrencies

Methodology

This online survey was conducted by Regina Corso Consulting on behalf of Blumberg Capital between September 5 and 8, 2017 among 2,037 U.S. adults, aged 18 and older. Figures for age, gender, education, income, employment and region were weighted to bring them into line with their actual proportions in the population. Because the sample is based on those who agreed to participate, no estimates of sampling error can be calculated.