Why have 68 million US consumers opened a FinTech bank account?

FinTech banks have quickly become an integral part of the US banking ecosystem. 68 million consumers across the country use FinTech banks like Chime, Sofi and Ally, and 30 million consumers use such FinTechs as their primary financial institution (FI) instead of traditional banks – and the number is growing stronger every year. .

Which consumers are signing up with FinTechs? What is driving them away from traditional banks and credit unions, and what can they teach FinTechs about attracting new customers?

in “The role of fintech banks“, a collaboration with Ingo money, PYMNTS goes into the field to learn more about the role FinTech banks play in consumers’ everyday lives. We surveyed a census-balanced panel of 3,633 consumers about whether they used FinTech banks, the services they used from those banks, and what they expect and demand from them.

Key findings from our research include:

• FinTech banks are most popular with bridge millennials, low-income consumers and paycheck-to-paycheck consumers struggling to pay their bills. Bridge millennials – the group of consumers including younger members of Generation X and older millennials – are the most likely of all these demographic groups to use FinTech banks, with 48% of them doing so.

• On average, consumers who use FinTech banks as their primary FI use almost twice as many services as those who use them as secondary FIs – and Chime customers use the most services of all. Consumers using FinTech banks as primary FIs use those banks for 3.7 services, while those using them as secondary FIs use those banks for 2.3 services.

• Many consumers use FinTech banks specifically to avoid paying fees to send or receive instant payments. Only 16% of consumers who use FinTech banks as their secondary FIs say they are very or extremely willing to pay extra for instant withdrawals, making them far less likely than other FinTech bank customers to do so.

These are just a few of the industry trends reshaping the banking ecosystem in the US “The Role Of FinTech Banks” provides practical insight on how FinTechs can learn from these trends and encourage more traditional bank customers to switch.

To learn more about how FinTechs can tailor their services to meet the rapidly changing demands of banking customers, download the report.