MX Survey Says Consumers Decide App Excellence on FI’s Ability to Deliver Secure, Easy Transactions
By W.B. King
While 73% of respondents surveyed in MX’s Consumer Money Matters: Debt on the Rise, Savings on the Decline report say they have connected their money-related apps to their financial accounts, a leading concern is the ability to connect securely and easily. But this is not the only issue top-of-mind as 47% said that due to the fallout from the pandemic and a faltering economy rife with inflation, money is their primary source of stress.
“With so many people worried about their financial futures, it’s an opportune time for financial institutions (FIs) and fintechs to step up and assist in ways that only they can,”MX Vice President of Go to Market Shayli Lones said in a statement.
Conducted in June 2022, the survey polled 1,000 American adults across all banking demographics. Twenty-five percent identified as baby boomers, 21% as Gen Xers, 21% as millennials and 33% as Gen Z. The respondents were virtually split between male (49%) and female (51%).
Nearly 1 in 10 respondents (8%) said “no” when asked if connecting an app to a financial account went smoothly the first time they attempted it, the report noted. For Gen Z, this figure was 12%.
“Additionally, 27% of respondents said that they have had to reconnect an account because the connection broke,” the report stated. “Forty-five percent of those who have been disconnected also say that their connected financial accounts and money-related apps regularly get disconnected.”
The most common actions performed on a money-related app was checking a balance (91%), transferring money from one account to another (62%), depositing a check (54%), transferring money to a friend (46%) and scheduling a bill payment (38%).
“The organizations that solve this connectivity pain point will garner stronger customer satisfaction and loyalty, especially among Gen Z, by providing better consumer experiences when interacting with a mobile or digital banking experience,” the report noted.
Where FIs need to pay better attention, the report stated, is how younger generations are handling problems related to money management and banking-related issues.
“Only 29% of [all] respondents would turn to their primary financial provider,” the report continued. “Unsurprisingly, Gen Z (42%) and millennials (31%) turn to their parents more often than any other resource.”
Making the Case for Open Finance
MX’s report found that while it has been purported that there has been a significant decline in a consumers having a primary financial institution, the good news is that 85% of those polled did have a primary FI. Sixty-nine percent also said they trusted their FI with personal data. Twenty-six percent noted that they have been a victim of fraudulent transactions in the past two years, which is a disconcerting pain point.
For FIs to remain successful and competitive, MX’s report makes the case for open finance (also known as open banking), noting that it is the “key driver” allowing “consumers to access and act on their financial data more reliably and securely.”
Lones further explained that open finance helps “connect the dots by enabling seamless account aggregation and a more complete picture of a consumer’s finances so that they can better reach their financial goals.”
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