Bigger Not Always Better When Consumers Chose FinTech Banks, Study Finds

Money mobility is a crucial aspect of how we expect to be able to pay out or be paid, and the experience can vary widely, and the size and type of financial entity we deal with don’t always reflect the money mobility experience consumers report.

Broadly speaking, money mobility is the ease with which account holders can move money in and out of their accounts. This usually means that more ‘money in’ functions and more ‘money out’ functions lead to better money mobility. The number of these methods that a FinTech offers tends to vary with its size, and FinTechs of all sizes tend to provide more ways to make payments and transfers than ways to put money into their accounts, such as via deposit.

Examining this in the 2023 Money Mobility Index, a PYMNTS and Ingo Money collaboration, we surveyed over 3,600 U.S. consumers to score FinTech issuers on the money mobility experiences they deliver, including the options offered for money movement.

Analyzing money-in and money-out transactions seeking features contributing to customer satisfaction, we correlated the number of payment alternatives issuers offer to consumers’ likelihood of using services from nonbank providers — and the corresponding satisfaction.

As the study states, “A closer look at the makeup of top-performing firms reveals that both large and small issuers are succeeding in customer satisfaction. Our study finds that 23% of the top-performing FinTech issuers generated more than $500 million in revenues, while 27% generated between $5 million and $10 million. This data suggests that a firm’s size does not correspond to success, as the largest, those with more than $500 million in revenue, and the smallest, those with less than $10 million in revenue, we studied can both provide a better customer experience.”

We found that the largest FinTech issuers “are the best at providing streamlined procedures to move funds into accounts: 57% reported that their customers face no problems when receiving funds. The smallest firms are the best in providing convenience options, such as money-out tracking capabilities and notifications: 79% reported that customers faced no problems with each feature.”

Get Your Copy: 2023 Money Mobility Index