Most Americans hold a positive view of financial technology (FinTech), though 3 in 10 are unsure about it, according to a recent study from Blumberg Technology. Despite a majority believing that traditional institutions as currently known will cease to exist during their lifetimes, survey respondents generally prefer a mix of traditional banking services and innovative new technologies to a single paradigm.
About half said they favored a mix, while 24% want a traditional bank and no part of any FinTech innovations. The remaining respondents either find it important to have access to the latest innovation (20%) or are unsure of their position (7%).
Not too surprisingly, Millennials and Gen Xers are the most likely to value access to the latest technological solutions. That’s in keeping with MarketingCharts’ Marketing Financial Services to Millennials, which explored youths’ attitudes to FinTech and willingness to try digital-only banks and alternative financial institutions.
In terms of the perceived benefits of FinTech, the Blumberg Capital survey results indicate that:
- Roughly 3 in 4 believe that financial technology allows people to have more power over their finances, democratizing financial services;
- Seven in 10 feel that new developments in e-commerce, digital banking and other such services help people like them;/li>
- More than 2 in 3 believe that the latest tools will help many more Americans be better off financially; and
- Almost 2 in 3 feel that financial technology provides access to services that were previously only available to the wealthy.
Perceptions of FinTech’s capability to democratize financial services were higher among youth and higher-income households.
Other results from the report suggest that Americans want flexible borrowing options that minimize interest payments as well as alternative options for traditionally underserved groups. Security and low fees also emerged as important banking factors.
About the Data: The results are based on a survey of 2,036 US adults (18+). Figures for age, gender, income, education, employment and region were weighted according to the US population.