[eMarketer] Fintech adoption in US on a meteoric rise

The percentage of US consumers using technology to manage their finances jumped from 58% last year to 88% this year, per a Plaid survey. The online survey was conducted from July 6-20, 2021 among 2,000 US adults.

In last year’s Plaid survey, 69% of respondents said fintech was a lifeline during lockdown. Even though businesses and bank branches have since reopened, 58% still say they can’t live without tech to manage their finances. In fact, between 80% and 90% of fintech consumers plan to use these solutions just as frequently or even more often going forward.

Fintech solutions have traditionally struck a chord among younger and more affluent consumers. But new customer segments are rapidly growing: Baby boomers are the fastest-growing segment, going from an adoption rate of 39% to 79% today. And a whopping 96% of Hispanic Americans now use fintech, up from 62% last year.

According to eMarketer, since US consumers have become much more comfortable with using fintech, they’ll do more shopping around. And it’s more difficult to stand out now that all financial service providers—both incumbents and startups—are applying technology to their offerings. Fintechs seeking to cement their competitive edge will therefore need to take a more nuanced approach than simply offering standard services digitally, leading to audience hypersegmentation.

Read the full eMarketer article here

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