A new report from Visa digs deep 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 report, in collaboration with polling firm Ipsos, looked at six personas representing different financial mindsets. The most affluent and open to new experiences are termed “fintech pioneers.” This group not only tends to be more affluent, but also seeks out innovative payment methods for the 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 own terms.
The notable attitude among this group is that 81% enjoy trying 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 evidenced 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.
Benefits, Not Convenience
Fintech pioneers prioritize benefits over convenience. They average eight accounts across checking, savings, and investment, looking for rewards rather than ease of use. It’s common for them to have checking accounts at different financial institutions.
Not only is this group the most affluent of the six personas identified, but they are also the most likely to travel and spend indulgently on themselves. Their primary reason for using new fintech products is to earn rewards and points, followed by “least likely to have technical glitches.” This contrasts with other groups that cite advantages like “fastest” or “easiest to use.”
Non-traditional Information Sources
Reaching these individuals requires a focused approach. They live their lives online, listing “social media influencer” and “Google/Yahoo finance” as primary sources of information. Tellingly, they don’t list TV, newspapers, financial advisors, or even family and friends as trusted sources.
Visa provided a mock profile of the ultimate fintech pioneer. “I rely on apps and mobile wallets for shopping and arrange automatic payments for monthly bills,” the persona said. “I find traditional savings accounts to be too accessible, tempting me to deplete them quickly. Therefore, I favor financial products and services that provide speed and convenience but don’t allow me to easily withdraw funds, which keeps my savings secure…. I regard money as the means to afford the lifestyle to which I aspire.”
