Consumers and small businesses generally feel they get more value from fintechs than traditional banks, according to the findings from a recent survey by the Financial Technology Association, the DC-based trade association representing fintech industry leaders.
According to its latest ‘State of Fintech’ survey, the Financial Technology Association says that nearly all consumers (96 per cent) and small businesses (98 per cent) report high satisfaction with the fintech products and services they currently use.
Meanwhile, 79 per cent of consumers and 95 per cent of small businesses report that fintech better meets their financial needs and feel a greater sense of control (consumers: 79 per cent, SMBs: 93 per cent) compared to traditional banks.
“In today’s digital world, fintech is the essential ingredient powering Americans’ financial lives,” explained Penny Lee, president and CEO of the Financial Technology Association. “Our industry continues to deliver easier-to-use, more transparent, and lower-cost financial products that American consumers and small businesses love to use.”
In fact, this satisfaction appears to go so far that 86 per cent of consumers and 95 per cent of businesses report that fintech improved their financial well-being, while 94 per cent of small businesses are likely to recommend fintech tools to other businesses in their industry.
The top wants and needs of consumers and businesses
When it comes to the priorities most important to respondents, the survey, which was conducted in partnership with Morning Consult, found that user-friendly design tops the list for consumers (89 per cent) and small businesses (93 per cent) alike.
The Financial Technology Association also revealed that payments are a top use case for both consumers and small businesses, but both audiences engage with multiple fintech products.
Among consumers, top use cases include payment apps (88 per cent), mobile banking and neobanks (33 per cent), Buy Now Pay Later (26 per cent), investment and wealth management platforms (16 per cent), money transfer and remittance services (14 per cent), and earned wage access tools (10 per cent).
For small businesses, top use cases include online payment platforms (93 per cent), digital lending platforms (52 per cent), accounting and bookkeeping software (44 per cent), mobile banking apps (38 per cent), payroll or HR management tools (27 per cent), and invoicing or financing services (17 per cent).
Most small businesses and a large share of consumers depend on fintech for financial management (81 per cent of consumers and 97 per cent of small businesses).
Optimising business processes
Overall, 94 per cent of small business respondents in the survey report that fintech enhances operational efficiency and improves the overall financial management of their companies. Ninety per cent agree that fintech offers financial tools or services that traditional banks do not provide.
Seventy per cent of small businesses also report time and cost reductions from using fintech. Seventy-two per cent of small businesses say that fintech helps them make sales and process customer payments online.
Overwhelming majorities of respondents report high levels of trust in fintech (85 per cent of consumers and 90 per cent of small businesses). Security and transparency appear to be the key drivers of trust, with respondents pointing to clear pricing, user-friendly design, and real-time visibility as motivating factors.
