Today’s economy relies heavily on digitally oriented consumers, which makes moving money swiftly a crucial demand for financial service providers, particularly emerging FinTech issuers aiming to attract customers away from traditional banks.
However, the “Issuers Report 2023: FinTechs’ Instant Payment Mismatch,” a PYMNTS and Ingo Money collaboration, suggests there is a mismatch between what FinTech issuers believe customers value and what customers actually prioritize when using a FinTech account.
PYMNTS Intelligence drew on surveys of nearly 2,300 consumers and 150 FinTech issuers to provide a snapshot of the current state of services that FinTechs offer consumers in the United States, including the services issuers offer and their customers’ satisfaction with the money mobility capabilities they provide.
Findings detailed in the study revealed that consumers place great importance on having multiple payment and fund transfer options when using a FinTech account. Fifty-six percent of respondents cited this as an important factor, with 26% considering it the most important. Additionally, 28% of consumers said they prioritize transfer speed when choosing a FinTech provider.
Yet the study found that 19% and 12% of FinTech chief financial officers identified transfer options and speed, respectively, as the most important reasons for customers to use a FinTech account. This suggests a disconnect between issuers’ perceptions and the reality of customer preferences.
Moreover, while convenience and customer experience are often touted as key selling points for FinTech issuers, the study revealed that they are not the primary factors that drive customers to use these accounts. Twenty percent of consumers cited convenience as their most important reason for using a FinTech account, while 4.8% mentioned customer experience.
The disconnect between FinTech issuers and account holders regarding the features customers deem important when using a FinTech account highlights the need for issuers to align their offerings with customer preferences.
By prioritizing the availability of multiple payment options and ensuring speedy transactions, FinTech providers can establish greater trust and satisfaction among their customers.