Taking into consideration recent economic challenges, which entailed supply chain issues, market volatility, and inflation, it’s no surprise that 95% of consumers started to feel financial stress in recent times.
But what may come as a surprise is the fact that 61% of them claim fintech has helped them overcome their economic issues.
Quite unexpectedly, the use of fintech soared in recent times. Namely, in 2021, 88% of US consumers were using fintech. And according to the most recent data, 76% of people plan to use technology more to manage their money in 2022.
There’s a valid reason behind this. Namely, 48% of respondents in 2022 reported that fintech made them feel more financially secure, which was the highest response rate in the past three years. The figures were slightly lower in 2020 (42%) and 2021 (44%).
While people want to use digital finance for various reasons, the top three motivations include:
- The ability to manage finances from any location (39%)
- Easier financial management (37%)
- Improving one’s financial well-being (30%).
In light of fintech’s increasing popularity, consumers are getting to know which features of these services they value the most.
In regards to digital privacy, nine out of 10 people want more control over their financial information, and 83% would like to choose where their financial information is shared.
Furthermore, trust is essential when it comes to finances. And according to the survey, companies that protect their clients’ information have a better chance of gaining and keeping customers.
That said, 76% of Americans claimed they were more trusting of fintech companies that transparently communicate their privacy practices.
The ease of use was also identified as a crucial factor. To be more specific, 76% of people reported they’re more likely to use a fintech app if the sign-up process is instant and straightforward.
In the same vein, 58% of respondents admitted they’ve given up using an app due to a complicated sign-up process.