39% of US consumers use a FinTech service
Neo-banks, non-banks, and a host of other constructs fall under the rubric of “FinTech,” and while widely popular with the digital economy first, specific user profiles emerge upon closer examination.
PYMNTS analyzed this in “Satisfaction with 2022 disbursements: the role of FinTechs», a collaboration with Ingo moneyand is part of The Disbursements Satisfaction 2022 series.
In a survey of over 3,600 US consumers, we found that 39% use FinTechs in some capacity, either as a primary or secondary financial institution (FI). This indicates that at least 68 million US consumers use FinTechs to some extent, often to receive or send money peer-to-peer (P2P).
However, the study said that “FinTechs are especially popular among low-income consumers who live paycheck to paycheck with bill-paying issues,” with 39% of consumers in this bracket using the FinTechs and 22% using them as their main FI.
Of consumers who don’t live paycheck to paycheck, only 14% use FinTechs as their primary FI.
“They are more likely to use FinTechs as secondary FIs, with 26% doing so,” the study found.
While similar trends are seen among high-income and low-income consumers, large numbers of both types of consumers use FinTechs.
“The difference is that high-income consumers are more likely to use FinTechs as secondary FIs than as primary FIs, while low-income consumers use them as primary and secondary FIs in roughly equal measures,” according to the study.
These statistics lead to the conclusion “that although consumers from a wide variety of financial backgrounds use FinTechs, those who use them as primary banks may see them as profitable alternatives to traditional banks and credit unions”.
Additionally, we found that “consumers who use FinTechs as their primary financial instrument also tend to use them for a wider range of ‘everyday’ financial products, including ATMs, credit cards, and debit cards. throughput, compared to consumers who use FinTechs as secondary FIs.
Among consumers who use FinTechs as secondary FIs, P2P payments are the predominant use case.
We are always looking for partnership opportunities with innovators and disruptors.