As the shift from in-person financial management to digital financial management continues to increase, it has seen Gen Z place more trust in fintech brands than traditional banks. In fact, 66% of Gen Z trust fintech brands more than traditional banks with their financial information and 80-90% of people have indicated they will continue to use fintech apps after the pandemic.
The rise and popularity of fintechs indicates a growing battle between new and traditional finance organisations. At the heart of it, fintechs are addressing consumers’ digital needs better. By learning from what fintechs are doing to accommodate consumers’ demands your finance brands can remain competitive and build trust. So, what can your finance brand learn from the rise in fintechs?
Shifting trust from traditional finance brands to fintech
The pandemic has encouraged and sped up the shifting trust from traditional banks to digital finance organisations. A physical location is no longer necessary or required by consumers. In fact, 48% of people use fintech every day and this number is continuing to grow.
“ 48% of people use fintech every day and this number is continuing to grow. ”
Creating a digital platform that addresses your customer’s financial needs in one place will ensure you retain them and are able to acquire new ones. While many traditional finance brands have begun the transition from in-person to digital financial management, this has been a slow process empowering fintechs to rise in power. By ensuring your finance brand consistently and quickly improves its digital offerings, you can remain ahead of the competition.
When it comes to digital platforms there are two things consumers want:
- A digital platform that integrates into their everyday lives – 77% of fintech users say fintech seamlessly integrates into their everyday lives.
- An inclusive design – Fintech use surpassed traditional banking among Hispanic people in the U.S. (95% use fintech) indicating its ability to create greater accessibility to financial management.
Fintechs offer greater flexibility to the traditional financial management model enabling any individual to have access to tools and products that cater to them and their unique needs.
Why do consumers prefer fintechs?
Other than the fact that fintechs can be integrated easily into consumers’ everyday lives and their more inclusive design, there are several other reasons why Gen Z trusts them more. These include:
- 93% saves time
- 81% gives more control
- 78% saved money
- 76% establish better financial habits
- 73% reduces stress
At the end of the day, consumers are beginning to prefer fintech brands over traditional finance organisations because their digital platforms are more personalised and easy to use. By considering what your consumers want in a finance app and tailoring it to their demands you can retain customers, acquire new ones and remain competitive.