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Fintech: Competitors or Collaborators?

October 2021 | Changes in Consumer Channel Usage | Digital Personal Contact | Role of AI and Intuitive Banking
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Financial technology firms have built an entire industry around the premise that gaps in the customer experiences provided by traditional financial-services providers can be filled by innovative applications and processes. They seek to shift market share to their platforms by smoothing friction points or otherwise enhancing financial services. Traditional service providers are also engaged in this space, of course, but they are often inhibited by legacy systems, regulatory requirements, and the need to spread resources across multiple objectives. Undoubtedly, many traditional financial institutions possess advantages, such as brand recognition and customer trust, but they must reevaluate and adapt to consumer trends in order to defend and expand market share.

Recent Phoenix Synergistics studies have shown that certain consumer segments have an appetite for innovative services and features. A majority of Gen Z and Millennial consumers have used personal financial management (PFM) apps, software, or websites. A majority of consumers in these segments say they are likely to use investment-planning tools (including robo-advisors), retirement-planning tools, and financial account-aggregation apps/sites. Notable numbers of young consumers have used smart speakers and wearable technology devices to conduct financial activities. A majority of Gen Z, Millennial, and Gen X consumers express a willingness to open financial accounts with a nontraditional, financial-services provider if the opportunity arises.

As technological advances and societal shifts occur, consumer demand for financial services will inevitably evolve. To remain relevant or stay a step ahead of the competition, financial institutions must thoroughly understand and then react to consumers’ needs, attitudes, and behaviors. Now more than ever, as the COVID-19 pandemic reshapes patterns of day-to-day activity, financial institutions must maintain a clear view of the dynamic consumer landscape.

 

Research Objective
This study examines the consumer perspective on and experience with fintech providers.

Research Design
National survey – The survey will include 2,000 online interviews with consumer financial decision-makers age 18 or older.

Major Competitor Profile

A profile of overall financial activity for the top financial institutions used will be included as part of the project report.

Project Report Outline

  • Strategic Insights with key findings and implications
  • Competitive Intelligence
  • Survey Analysis
  • Survey Methodology

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