Digital Banking Gains Momentum as Consumers Use More Accounts for More Purposes
Galileo Financial Technologies, the leading global fintech-as-a-service platform owned and operated independently by SoFi Technologies, Inc. (NASDAQ: SOFI), today released new research, the 2021 State of Consumer Banking and Money survey, that demonstrates growing usage of different financial tools by consumers with all generations increasingly turning to digital banking options.
Gaileo surveyed 1,000 U.S. adult consumers (ages 18-64) to understand where they keep their money, and why and how they use their accounts across traditional banks, digital-only banks, prepaid cards and stand-alone digital options. Among the key findings: 21% of adults use a digital-only bank as their primary account and report greater satisfaction (79%) compared with the 65% of consumers who use a traditional bank as their primary account and report 66% satisfaction. What's more, as digital banking proliferates, 77% of adults who use traditional banks as either a primary or secondary account keep 43% of their funds elsewhere.
The survey also revealed that despite continuing to choose traditional banks as their primary provider, consumers across all generations are utilizing non-traditional financial tools more than ever before and for more purposes. Consumers average 2.5 providers and use their primary accounts for ~4 activities and their secondary accounts for ~3 activities. However, the lines are blurring between uses across account types.
"The financial frontier is rapidly and dramatically transforming right before our eyes," said Seth McGuire, chief revenue officer at Galileo. "Consumers are looking for financial services experiences that meet them exactly where they are: on their devices, using various applications, accessing their money both traditionally and digitally, and doing more with their money. Across this industry there is a massive opportunity to bridge the gap among all consumers and deliver highly valued engagements for those who use traditional banking and those who prefer digital."
Additional key report themes and findings include:
Where Consumers Bank Isn't Always Where They Keep Funds
Digital Providers Generate Greater Satisfaction and Interest Among Consumers
All Generations Are Embracing Non-Traditional Financial Services, But the 35-44 Segment Uses Digital-Only Banks Most
Consumers Use Traditional and Non-Traditional Financial Services for Similar Activities
Security and Privacy Are Paramount Consumer Concerns
Opportunities for Embedded Finance
Galileo is hosting two webinars to dive deeper into the research findings. The first, on October 14, will cover consumer habits and usage across age and income demographics. The second on November 17 will go deeper into what motivates consumers to choose, switch and stay with a provider, and what drives satisfaction.
For more information on the survey findings or Galileo, please visit www.galileo-ft.com.
About Galileo Financial Technologies
Galileo is a leading financial technology company whose fintech-as-a-service platform, open API technology and proven expertise enable fintechs, emerging and established brands to create differentiated financial solutions that expand the financial frontier. Galileo removes the complexity from payments and financial services innovation by providing flexible, open API building blocks and a secure, scalable, future-proof platform. Trusted by digital banking heavyweights, early stage innovators and enterprise clients alike, Galileo supports issuing physical and virtual payment cards, mobile push provisioning and more, across industries and geographies. Headquartered in Salt Lake City, Galileo has offices in Mexico City, New York City, San Francisco and Seattle.
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