Fintech
Understanding the financial mindset of fintech pioneers
A new report from Visa takes a deeper dive into what they call “fintech-forward” consumers, who embrace diverse platforms, apps and innovative payment methods for financial management.
THE How digital maturity shapes consumer financial behavior The report, in collaboration with polling firm Ipsos, examined six individuals representing different financial mindsets. The richest and most open to new experiences are defined as “fintech pioneers”. This group not only tends to be wealthier, but also seeks innovative payment methods to obtain rewards and benefits that support a lavish lifestyle. For financial institutions aiming to engage this audience, the key is to identify and reach them on their terms.
The noteworthy attitude of this group is that 81% prefer to try new forms of payment. More than half of them have a digital wallet, while only 15% have a credit card. Their willingness to experiment with their finances is further demonstrated by the fact that 30% own cryptocurrency and 10% have a cross-border account, highlighting areas where innovative fintechs can find opportunities to connect with them.
Advantages, not conveniences
Fintech pioneers prioritize benefits over convenience. They average eight accounts across checking, savings and investments, seeking rewards rather than ease of use. It is normal for them to have current accounts at various financial institutions.
Not only is this group the richest of the six identified characters, but they are also the most likely to travel and spend indulgently on themselves. The top reason they use new fintech products is to earn rewards and points, followed by “less likely to have technical issues.” This contrasts with other groups that cite benefits such as “faster” or “easier to use.”
Non-traditional sources of information
Reaching these people requires a targeted approach. They live their lives online, listing “social media influencers” and “Google/Yahoo finance” as their main sources of information. Significantly, they do not list TV, newspapers, financial advisors, or even family and friends as reliable sources.
Visa provided a simulated profile of the ultimate fintech pioneer. “I rely on apps and mobile wallets to make purchases and arrange automatic payments for monthly bills,” the character said. “I find traditional savings accounts too accessible, which causes me to run out of them quickly. Therefore, I prefer financial products and services that offer speed and convenience but do not allow me to easily withdraw funds, which keeps my savings safe…. I see money as the means to afford the lifestyle I aspire to.”