Financial technology or FinTech has been largely discussed in the financial sector due to its disruptive nature. But what are the actual attitudes tow
Financial technology or FinTech has been largely discussed in the financial sector due to its disruptive nature. But what are the actual attitudes towards FinTech companies and new financial technologies?
Blumberg Capital, an early-stage venture capital company specializing in Seed and Series A rounds, set out to examine the attitudes of American consumers toward traditional banking institutions, FinTech start-ups and new financial technologies like blockchain and cryptocurrency.
The online survey was conducted by Regina Corso Consulting on behalf of Blumberg Capital between September 5 and 8, 2017 among 2,037 US adults, aged 18 and older. Here is what they found:
Banks or FinTechs?
Half of the American population prefers to use a traditional financial institution. However, they also seek the advantages offered by new technologies and services.
In other words, the survey stated that consumers trust their banks, but want access to new technologies. The survey`s results made clear that 79% of the respondents want access to flexible borrowing capabilities that minimize interest payments. On the other hand, 68% of respondents agreed that traditional banks are trustworthy and look out for customers` financial needs.
In addition, the majority of Americans have a positive view of FinTech, while 63% would like an automated system integrated by their bank. At the same time, the survey revealed that 51% of Americans think that traditional financial institutions do not evolve fast enough to keep up with consumer’s needs and expectations.
FinTech`s role in Democratizing Financial Services
Most American who took part in the survey said that FinTech helps people gain more power and democratize financial services.
According to 86% of respondents, financial advisors should be required to act as fiduciaries and give objective and fair financial advice. Meanwhile, 76% agreed with the statement that financial technology helps people gain more power over their finances and helps democratize financial services. The survey pointed out that 69% of the participants stated that FinTech provides access to services previously only available to businesses and/or the wealthy.
Americans are positive on blockchain and cryptocurrency
As the survey`s results showed, 51% of respondents said that the latest developments in crypto-currency will improve the financial industry by making things cheaper and faster for consumers.
However, less than half of Americans know what Bitcoin is and three in ten know how to store or invest their money in cryptocurrencies. Also, it should be noted that 40% of respondents agreed with the statement that cryptocurrencies are for criminals or hackers to receive compensation disretely.