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How a Pandemic Changed the Way Consumers Think About FinTech

In a recent article by Mckinsey & Company, US consumer sentiment towards fintech during the COVID-19 pandemic is discussed and several observations based on survey data are presented. These observations are based on a number surveys conducted by McKinsey which measure “financial sentiment, behaviors, needs, and expectations among household financial decisions markers in 30 countries”.

The surveys were conducted over a 9 month period beginning in March 2020. Some of the observations from the article include:

  • Over forty percent of US financial decision makers have indicated that they possess a fintech account.
  • There has been growth across all areas of fintech with the largest amount of growth being the use of fintech banking platforms by consumers.
  • The top US states for consumers holding fintech accounts are in the southern states with the exceptions of New York and California.
  • Older generations are likely to have less fintech accounts then younger generations.
  • COVID-19 has not encouraged non-fintech users to open accounts 
  • The level of trust of fintech institutions is similar to that of traditional banks.

The article observations indicate that consumer adoption of fintech continues to increase across several demographic groups. The observation that the level of consumer trust of fintech institutions is comparable to traditional banks seems favorable for continued fintech growth. Although there has been a positive trend in fintech, the data presented in the article indicates that COVID-19 has not encouraged many non-fintech users to adopt fintech solutions.

However, with the potential for continued restrictions on branch banking due to COVID shutdowns as well as the health risks associated with congregating in public spaces, these consumers may eventually gravitate towards a fintech solution. Worth noting is that among the non-fintech users there are a higher number of potential adopters among the younger generations than the older ones. This seems to indicate that over time, and with this trend continuing, the number of consumers in the non-fintech user category could decrease.
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Brandon Caruana
Brandon Caruana

Recognized for building bridges between technology and business divisions, Brandon forges successful working relationships with all levels of team members, encouraging communication and cooperation to effectively provide easy to use systems which improve efficiency and increase profitability.

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