The

The Fintech Effect | 2023 Consumer trend report

Fintech
Effect
Navigate the latest consumer trends, create
lifetime customers, and grow your business
TABLE OF CONTENTS

From ledgers to log-ins

03 Introduction 30 79% are comfortable opening an account with fintechs

Cards on the table? What’s on your home screen?

08 Nearly 70% of consumers are open to pay-by-bank 34 For the average consumer, it’s 3-4 fintech apps

Credit score, schmedit score! AI take the wheel

12 63% of consumers say credit scores aren’t enough 39 Consumers want AI to help them, on two conditions

The new pioneers of fintech Wall Street wins the race

16 Fintech’s vision for financial inclusion comes to life 43 Consumers shift to traditional investments, as crypto cools

Class is in session
Conclusion
19 66% of consumers want fintechs to teach them more 48

High inflation, higher hopes

25 91% of consumers have financial goals for 2024
Introduction

In today’s fast-moving economy, one thing is certain: change. In the past

year, we saw pandemic concerns ease slightly for consumers, signaling a
sigh of relief. But over time, financial concerns piled on—from rising
inflation to recent bank failures to fears of a looming recession and broader
economic uncertainty. Through it all, consumers have looked to fintech
apps and services to help them rise above it. 

As fintech companies continue to face their own challenges in a

constrained funding environment, having the latest insights on how
consumers view and manage their finances is more important than ever. 

In this year’s Fintech Effect, we surveyed thousands of consumers to better

understand their financial lives, the challenges they’re up against, and what
they need from fintech in order to achieve greater stability and opportunity
in 2023 and beyond. 

Whether you’re creating your product roadmap, looking for ways to build
trust with today’s consumers, or want to understand the most important
usage trends—this report is for you. 

Let’s get started.

03 // INTRODUCTION
Methodology

This online survey was conducted by The Harris Poll on behalf of Plaid 

from August 21-September 6, 2023, among 2,002 adults in the United
States ages 18 and older. 

Heavy

users

In addition to the key populations displayed here, we analyzed results by 736

age, gender, region, urbanicity, ethnicity, income, assets, employment,

marital, and parental status. 

Fintech

users

1,576
The data is weighted to the population of the U.S. This online survey is not Total
based on a probability sample. Therefore no estimate of theoretical 2,002 Light

sampling error can be calculated. 

users

840
In June 2023, we also held 5-day digital diaries with 30-minute follow-up
interviews among 16 American consumers. The participants represented 

a mix of genders, ages, ethnicities, incomes, and fintech literacy, among
other factors. Fintech

non-users

426

04 // INTRODUCTION
Meet the next wave of fintech consumers

In 2021, fintech reached mass adoption when nearly 9 in

10 consumers in the U.S. and U.K. used digital apps and
services to manage their finances. In 2022, as the
pandemic eased and the world opened up, we saw
consumer adoption of fintech remain high as more
people began to experience what fintech had to offer:
more control, better insights, and greater convenience.
Since then, we’ve seen the very definition of fintech
evolve to include banks, insurance companies, retailers,
and more.

In this year’s survey, nearly 6 out of 10 (56%) consumers

say economic factors are making them reliant on digital
financial tools. For Gen Z and Millennials—that number
of consumers say fintech apps like budgeting
jumps to 65% and 71%. tools are helping them weather 

economic challenges
In total, 13% of consumers—a 4% increase since 2021—now use six or
more apps to manage their finances. This growing momentum for fintech
Users are leveraging more digital apps than years past
has carried over into 2023 as consumers use more apps than ever before. to manage money
The analytics company Adjust reported a 6% year-over-year increase in
Number of digital apps consumers use–and project to use–to manage money
fintech app installations globally at the beginning of 2023, along with a 

13% increase compared to the 2022 average. 

6+ 3-5 ≤2

Today’s consumers aren’t just looking to fintechs to help them complete

one-off financial tasks. They’re also using them to educate themselves, 

+4% +4% +6%
with 48% saying fintech apps have taught them about cryptocurrency, since 2021 since 2021 since 2020

certificates of deposit, and other new investment types. 13% 13% 20%

35% 34%
35%

56 %
52% 53%
say economic factors make them reliant
on digital financial tools. This is even 45%

more true for Millennials and Gen Z.

71% Millennial 65% Gen Z

6 months ago Today 6 months from now

06 // INTRODUCTION
The value fintechs deliver to consumers doesn’t end
there. According to our survey, fintech has helped 90%
of consumers in some way—saving them time or money,
giving them more control, reducing fear, or helping them
recover from a financial misstep. 

In essence, fintech solutions aren’t just digital

alternatives to traditional finance tools—they’re
transforming everything about how today’s consumers
manage their money.

Below, we’ll offer a closer look at the biggest takeaways

from this year’s survey and what they mean for financial
services at large.

Benefits of using technology to manage money of fintech users say fintech has

helped them in some way

Saved time 56%
Feel more in control 48%
Saved me money 42%

08 // INTRODUCTION
The Fintech Effect | 2023 Consumer trend report

Findin g 1

Cards on the table?

Nearly 70% of consumers are open
to pay-by-bank, even when credit
and debit cards are an option

08
Behind the numbers

86 %
The primacy of debit and credit cards
as payment methods in the U.S. is
subtly shifting,
See benefits of
as 86% of fintech users now acknowledge the benefits of pay-by- using pay-by-bank
bank options and express openness to using pay-by-bank to
make purchases. Nearly 7 in 10 say they would consider paying
for something with their bank account even when credit and debit
cards are an option. 

Convenience 32%
Consumers have different preferred payment methods across
different use cases. They tend to prefer credit cards for e-
Security 30%
commerce, but prefer pay-by-bank for recurring household bills.
Overall, those we surveyed reported using bank account transfers Avoid extra fees 24%
for an average of 9% of payments, as opposed to 28% with debit
cards and 26% with credit cards. Ease of tracking expenses 23%

11 // FINDING 1
 “ I usually do bank-to-bank, because there are less, if
any fees, and sometimes the transaction is faster.

This shift signals an impending transformation in the payments landscape—

Top 5 scenarios for consumer pay-by-bank
one that moves towards more direct, streamlined, and secure payment
methods. Increased awareness of pay-by-bank tools also highlights the
value consumers place on having more control of their finances, fewer Paying for recurring household bills
middlemen, faster transaction processing, lower fees, and better visibility
into their cash flow.
Sending money to someone

“ Everything pops up, and I can see everything I owe in

one place, alongside the amount of money I have at
Investing
this time. Purchasing a big-ticket item
The openness to pay-by-bank also suggests a growing emphasis on Paying for recurring subscriptions
security and trust, with consumers looking for more direct links between
their bank accounts and payment recipients, minimizing points of failure 

or fraud. Looking ahead, we can expect this trend to continue to fuel the
broader adoption of digital banking solutions, bringing us closer to a fully
integrated digital finance ecosystem.

10 // FINDING 1
 Why it matters What fintechs can do

Consumers are increasingly open to using 
 1 Offer instant payments 


pay-by-bank in new ways. Depending on the Instant payments will help you meet 

circumstances, bank payments can feel more consumer needs for speed and efficiency 

convenient, safer, and more transparent.

while differentiating your business. 


For fintechs, implementing bank payments 2 Lead with the benefits


enhances flexibility, reach, cost efficiency, 
 Make it easier for consumers to use pay-by-
and security in payment processing. As the bank by clearly communicating the financial
global financial ecosystem grows more benefits or offering rewards.


interconnected and diverse, multi-rail bank

payment systems (ACH, RTP, FedNow) ensure 3 Focus on the right use cases

fintechs remain agile, customer-centric, and Start with the most relevant use cases for 

ahead of the curve. your business, which could include 

Pay-by-bank
Peer-to-Peer (P2P) transfers, bill payments,
and subscriptions.

11 // FINDING 1
The Fintech Effect | 2023 Consumer trend report

Findin g 2

Credit score, schmedit score!

63% of consumers say the

three digit score isn’t enough to

understand their full financial picture

12
 63 %
Behind the numbers

Credit scores have been the gold standard for lenders since the 1950s. 

But we’re beginning to see more consumers question this approach
because of its inability to consider factors like income or spending habits. 

In this year’s survey, 63% of consumers said that their credit score doesn’t I feel like my credit score does not
give lenders the full financial picture of their ability to repay a loan. 

provide the full picture on my ability

to pay back a loan.
As leading lenders look to incorporate alternative credit data, such as on-
time rental and utility payments, the question remains: will consumers be
willing to share more financial information? Our data shows that 6 in 10

60
Americans think that by sharing their banking data, they’d be able to give a
more accurate picture of their ability to pay back a loan, with 67% of those
who use credit cards to make payments agreeing. Those figures tick up
slightly for Millennials at 71%. 

%
Meanwhile, the great majority of consumers are comfortable supplementing
credit scores as part of a loan application process. Over 8 in 10 (83%) are
comfortable sharing proof of primary income, and 73% are comfortable I feel that sharing my banking data
sharing bank statements and utility payment history.1 helps give a more accurate picture of
my ability to pay back a loan.

1. Plaid-commissioned survey through Opinium conducted on April 17 – 23, 2023 for purpose of understanding trends in anti-fraud work.
Why it matters What fintechs can do

From mortgage applications to student loans, 11 Move past credit scores


lending decisions can profoundly impact a When determining creditworthiness, look at factors like income information,
consumer’s wealth-building prospects. 
 payment histories, or investments. 


Getting credit and lending decisions right can

have a ripple effect on a consumer’s ability to 2 Unlock financial access

build the life they want and the economy at Grow your customer base by using alternative data sources to reach
large. Diversifying beyond the credit score 
 historically underserved communities. 


isn’t just a win for consumers—it’s also a win 


for lenders. By going beyond basic credit 3 Make it easy to share data

scores, lenders can get a better picture of an Diversify credit decisioning by making it easier for consumers to verify
applicant’s finances, helping them boost account balances, payroll information, or assets.
creditworthiness and reduce reliance on
systems that no longer serve them.

14 // FINDING 2
“
We offer a co-living marketplace for

low-income earners. By looking at things

like recent income, we’re able to be more
intentional about how we underwrite folks.

Hameto Benkreira, head of growth product Watch video

The Fintech Effect | 2023 Consumer trend report

Findin g 3

The new pioneers of fintech

Fintech’s vision for financial
inclusion comes into focus

16
Behind the numbers

Many Americans still lack access to basic financial services such as But fintech is helping shift the narrative by expanding access to
bank accounts and debit cards simply because of where they live, their historically underserved communities. According to our survey, Asian
access to transportation, or their financial background. According to (75%), Black (76%), and Hispanic Americans (86%) have all embraced
the Federal Reserve, 6% of adults were “unbanked” in 2022, meaning digital finance tools at higher rates than white consumers (72%).

they have no bank account at all. Another 14.1% of American families

were “underbanked” in 2021, meaning they still rely on nonbank And across the board, Hispanic Americans are adopting fintech at
services like money orders or payday loans despite having a bank or some of the highest rates. For example, 40% of Hispanic consumers
credit union account. 

use investing apps compared to 32% of the overall population. At the

same time, Hispanic Americans are more willing to try nontraditional
For these communities, the financial challenges can pile up as a result financial tools, with nearly 30% saying they use crypto apps and 

of a lack of access to credit, the inability to build savings, and the risk plan to continue using them, compared to only 19% of the 

of losing money to predatory financial service providers. Data shows overall population.
that income, education, and ethnicity strongly correlate with who’s
banked and unbanked. Despite only making up 32% of the population,
Black and Hispanic communities comprise 64% of unbanked
households and 47% of underbanked households in the US.

17 // FINDING 3
Why it matters What fintechs can do

Fintech usage trends in historically 1 Know your market


underserved and low- and middle-income Start by understanding the consumers in your target market, their 

markets is showing signs that it’s truly 
 financial needs and habits, and any existing barriers to financial access.  


reaching—and valued by—many of the

consumers traditional financial services have 2 Empower diverse groups

underserved. In the past year, we’ve seen this Build features that support specific, underserved population segments 

trend continue to fuel greater consumer such as families, gig workers, or students. 


adoption, specifically when it comes to saving,

sending money to relatives, or investing in 3 Collaborate more

stocks or cryptocurrencies. As more Learn about the needs of your target population and greatly increase 

governments, industries, and organizations their chances of success by partnering with local banks and

prioritize financial inclusion, fintechs have 
 community organizations.

the opportunity to continue to play a major 

role in addressing this problem by making
financial services more accessible and
affordable for those who need them most.

18 // FINDING 3
The Fintech Effect | 2023 Consumer trend report

Findin g 4

Class is in session
Nearly 7 in 10 consumers want
fintechs to do more to teach them
how to navigate high inflation

19
Behind the numbers

Nearly 9 in 10 (89%) of consumers are feeling some

degree of financial stress today. Perhaps unsurprisingly,
cost of living and inflation are the biggest concerns as
basic household expenses such as rent, groceries, and
utilities are significantly higher than this time last year.

“ I am very concerned. It seems 


like everything is getting more
expensive and I feel like everyone

is struggling to keep up.

feel financially burdened by the 


rising cost of living
While feeling the financial stress caused by inflation, the majority of consumers (55%) say that fintech
tools are actively helping them weather today’s economic challenges. Of those surveyed, 84% say
they’re better off as a result of using those tools. When it comes to the real benefits of using fintech, 97%
of fintech users say it’s helping them gain a better understanding of their spending, make progress
toward their personal financial goals, or feel less stress or anxiety about their finances.

Results of starting to use technology to manage finances

84
-5%

%
Understand my spending better, so I can manage money better 34%
since 2022

Made progress toward my personal financial goals 32%

Feel less stress/anxiety around my finances 31%

Feel more confident in my financial outlook 29% -8%

since 2020
say they have benefited
Experimented with new ways to build my savings 29%
from using tech to
manage their finances
Learned how to manage my money better/helped others learn 28%

Increased my savings 27% -7%

since 2021

24 // FINDING 4
66 % Still, many consumers want more from fintech, particularly when it comes
to helping them make better financial decisions. Nearly 7 out of 10 say it’d
be helpful if fintechs did more to educate them or provide them with
services specifically meant for times of high inflation. Half (51%) of
consumers are asking fintechs to do more to help them stay disciplined
and reach their financial goals faster.
It would be helpful if fintech companies
could educate or provide more
services on how to manage finances
during times of high inflation.

51 %
I want fintech apps to help me be more
accountable and disciplined (e.g.,
create restrictions on withdrawing
money prematurely, etc.)

22 // FINDING 4
Why it matters What fintechs can do

For fintechs, building stronger relationships 1 Give the full picture


with tomorrow’s consumers starts with solving Help consumers know they’re making the right financial moves by giving
their problems today. Up until now, helping them a holistic view of their finances. 

consumers manage their finances has largely

meant giving them a better perspective of their 2 Offer the right tools

financial situation, projecting cash flow, and Look for ways to give consumers context-appropriate insights and tips on
helping them reach their financial goals. Based managing their finances, especially in today’s economy. 


on this year’s survey, we’re seeing a growing

appetite for more financial education and 3 Help them stay on track

support for things like navigating high inflation Look for ways to help consumers keep up good habits and avoid financial
and sticking to a budget. mistakes that may set them back in the long run.

23 // FINDING 4
“
SoFi helps members get their money right.
In order to do that our members need to
have a full understanding of their existing
financial habits.
connie crossley, principal product manager Watch video
The Fintech Effect | 2023 Consumer trend report

Findin g 5

High inflation, higher hopes

91% of consumers have financial
goals for 2024, with saving and
investing at the top of the list

25
Behind the numbers

Even in challenging times, consumers are keeping an

eye on their financial future, as 9 in 10 (91%) have set
financial goals for 2024. For Millennials and Gen Z, that
percentage increases to 95%, underscoring the urgency
younger generations feel when it comes to their 

financial stability.

So, what goals are today’s consumers most focused on?

Their top five goals are saving or investing more of their
money, paying off personal debt, improving credit
scores, building an emergency fund, and sticking to a
budget. While saving or investing comes in at number
one at 42%, the fact that most of these percentages are
spread out across all five goals reflects just how have financial goals for the next year
multifaceted today’s consumers' financial needs are.

29 // FINDING 5
 “ Inflation is the highest it's been in years...I feel
Credit is a foundational pillar for financial health—and
most young people realize that. Millennials and Gen Z
like the writing was on the wall even before the
both show heightened interest in improving their credit
score. The reasons behind this could include the mix 

pandemic hit. The pandemic just exacerbated
of economic challenges they’re up against, easier 
 the inevitable.
access to online tools and resources, or their own
financial aspirations. 

Top financial goals for 2024

So what’s keeping consumers from reaching their goals?

Our survey shows that the rising cost of living, Saving or investing more
42%
insufficient income, spending habits, debt, lack of of my money

knowledge, poor credit, and not having a budget all 


pose the greatest challenges for consumers in 2024.
Paying off personal debt 29%

Cost of living/inflation - 54
Insufficient income - 29% Improving my credit score 25%
Spending habits - 26
Debt - 25%
Lack of knowledge - 19
Poor credit/lack of credit history - 19
Not having a budget - 17% 32% Millennial
25
aim to improve their credit
% score. This is even more true
for Millennials and Gen Z. 31% Gen Z

27 // FINDING 5
Why it matters What fintechs can do

The majority of consumers—especially 1 Build all-in-one platforms


younger generations—are actively setting With so many consumers having multifaceted goals, you can turn your app
financial goals. For fintechs, this signals a shift into a financial hub by addressing multiple needs.


towards a more proactive approach to money

management and future planning. The 2 Provide credit management

multifaceted goals of consumers also signal Offer tools that monitor credit scores, provide alerts on changes, and offer
that their financial aspirations are anything but actionable advice on improving or maintaining good credit. 


one-dimensional. Fintechs can rise to the

challenge by offering a combination of saving, 3 Improve financial literacy

investing, debt management, budgeting, and Build consumers’ skills and earn their trust by offering webinars, resource
emergency planning tools. The emphasis on articles, and AI-powered personalization to boost their knowledge.
credit for younger generations also opens up
the opportunity to help users build credit or
explore using alternative types of data to give 

a fuller picture of finances.

28 // FINDING 5
“
The core of what we do is help people

understand their finances by aggregating

a sea of financial information into a well-

crafted, insightful app.

Andrés Ugarte, Founder & CEO Watch video

The Fintech Effect | 2023 Consumer trend report

Findin g 6

From ledgers to log-ins

Consumers are getting more
comfortable opening accounts with
non-traditional service providers

30
Behind the numbers

Our survey shows that over the last 12 Percent of Americans who feel the same or better about each category

months, consumers’ comfort level has

grown or remained the same when Big banks 87%

opening accounts with various providers. Regional banks 85%

Community banks 85%

And even if consumers are more comfortable opening financial
Established tech companies 85%
accounts with banks, there’s still plenty of room to grow.  

Retailers 84%
Following the banking crisis in 2023, many wondered how the fallout
would impact consumer trust in banks. Despite one in five consumers Financial technology companies 79%
withdrawing cash in response, our survey shows that banks of all sizes
Social media companies 63%
continue to win the hearts, minds, and wallets of consumers. 

While consumers’ comfort with opening financial accounts with

technology companies remains relatively high, we did see it come in
lower at 79%. To help close that gap, it may be helpful to take a closer
look at what consumers look for when it comes to deciding whether or
not to trust a fintech app or service.

31 // FINDING 6
 76 When I create an
% 65 %
I would be willing to take
64 %
I feel safer using a digital
account with a new a selfie and a picture of financial product when 

mobile app, I prefer to my driver's license to I need to provide
verify my identity so protect myself from fraud identifying information
that the app can know when using a financial about myself (e.g., driver's
I am a real person. application. license, etc.)

It turns out that identity verification not only helps protect consumers In addition, 64% say they feel safer using a digital financial product
against fraud, it also makes them feel protected. When asked about when they’re required to provide identifying information, like a photo of
what fintechs can do to make them feel safer, 76% of consumers said their driver’s license. For Millennials, that percentage jumps to 76%,
that they’d prefer to verify their identity to prove that they are who they signaling that identity verification will continue to play an important role
say they are. in reaching younger audiences.

32 // FINDING 6
Why it matters What fintechs can do

Consumer trust can never be taken for granted. While the data shows that 1 Verify customer identities

consumer comfort level with fintechs remains relatively high, it’s still slightly Boost anti-fraud measures while helping
lower than in traditional banks. That differential could impact acquisition consumers feel safer using identity verification
and retention for fintechs in 2024. Fintechs can close that gap by being solutions that don’t compromise the 

even more proactive about the things that are top of mind with consumers. user experience. 


With nearly 8 in 10 in favor of fintechs using identity verification and roughly

the same number of younger consumers feeling safer when providing 2 Be upfront and transparent

identification, taking those extra steps to verify customer identities goes a Make it easy for consumers to understand any
long way in showing consumers why they can trust a new service. related costs and fees, including how their data
is being used—or not used.


3 Partner with banks


Tap into consumer trust in banks by building
stronger relationships with financial 

institutions and the networks that make those
connections possible.

33 // FINDING 6
The Fintech Effect | 2023 Consumer trend report

Findin g 7

What’s on your home screen?

Today’s average consumer uses
3-4 financial apps, with payments
leading the way

34
Behind the numbers

Top digital tools used to manage money

It’s hard to separate fintech from finance Payment services Programs to file my taxes

Pay my bills through my bank website Online-only banking services

these days with fintech embedded in
nearly every app and experience where
money or financial data is involved.
+17%
since 2020

73% 74%
In our survey, the average consumer reported that they use between 70%
three to four fintech apps. And 20% projected that they will be using six
57%
or more digital apps in the next six months—an increase from 14% 
 57%
56% 53% 53%
in 2020.  

40% 41% 43% 41%

And while Americans are using fintech to do everything from pay bills 34% 36%
30% 29%
online to file taxes, the most widely used digital tools for money
management revolve around payment services. Overall usage has
climbed 17% since 2020. Other digital financial services that have
gained meaningful momentum since 2020 include lending services
(+10%), investment tools (+7%), online-only banking services (+6%),
and payroll advance services (+6%). 2020 2021 2022 2023

35 // FINDING 7
The dominance of payment services across the fintech landscape highlights
the broader trends of consumer behavior, needs, and technology. As we
move into an increasingly digital world, we can expect payments to continue
to play a central role as consumers look for more convenience, flexibility,
and security.

36 // FINDING 7
Why it matters What fintechs can do

The growing dedication and adoption rates we 1 Diversify payment solutions


see across various fintech services signal a Make your offering stand out with a payment solution that enhances 

broader appetite among today’s consumers. the user experience, speeds up transactions, and boosts security. 


From payroll advances to online banking,

consumers are moving towards more 2 Focus on emerging service areas

accessible, flexible, and digital-first solutions. Offer multiple financial services so consumers won’t need to switch
Fintechs can meet that growing demand by platforms for different financial needs. 

emphasizing user education, transparency, 


and personalized offerings. 3 Develop strategic partnerships

Fast-track your roadmap while improving the consumer experience 

by partnering with other networks and fintech companies.

37 // FINDING 7
“
A Branch account can connect to tons of

other fintech apps. If a user needs to move

money, they can do that seamlessly.

Ahmed Siddiqui, VP of Product Watch video

The Fintech Effect | 2023 Consumer trend report

Findin g 8

AI take the wheel

Consumers are ready for AI to
revolutionize the way they manage
money, on two conditions

39
Behind the numbers

Artificial intelligence (AI) use cases are on everyone’s minds, and Even though AI is still considered the new kid on the block, our survey
fintech consumers are no exception. Around 7 in 10 (71%) consumers shows younger generations look forward to the impact it will make.
we surveyed have heard of generative AI, and 20% of those surveyed Among Millennials, 64% say they’re excited by the prospect of fintech
say they’ve experimented with it in the past 12 months. While usage apps using AI technology. Meanwhile, the majority of Millennials (60%)
remains lower among those we surveyed, expectations are high—six in and Gen Z (51%) say they’re even more likely to try a new fintech app
10 Americans (60%) think AI will revolutionize the fintech industry in when it says it’s using AI technology.
the next five years.

“ I tried using AI a couple times to ask questions

about places I was visiting. I also used it to help
Top use cases for Artificial Intelligence (AI)

write a cover letter for a job I was applying to. I Using AI to help lower bills by finding more

53%
plan on using it more in the future when I become cost-effective alternatives/negotiating lower rates

more familiar with things I can do with AI. Using AI to solve a customer service issue 51%

Using AI for budgeting/spending advice 50%

When asked about the biggest money challenges they hope AI can help
them tackle, 53% of consumers said cutting bill spending and Using AI to find and manage subscriptions 50%
negotiating lower rates was at the top of the list. Around half (51%) of
Using AI for financial educational advice 49%
consumers want to see AI help them with customer service issues,
budgeting advice (50%), and managing subscriptions (50%). Younger
audiences buy into the potential of AI even more, with around 60-65%
of Millennials and Gen Z sharing the sentiment.
40 // FINDING 8
 Nearly two-thirds (62%) of Americans also expect AI to help shape
fraud detection and prevention. Anti-fraud leaders agree: over half of
them are already incorporating AI into their strategies. And two out of
three (65%) believe AI will be necessary to implement in fraud
prevention over time.2

But consumers aren’t ready to get out of the driver’s seat just yet.
Three-fourths (78%) of heavy users and Gen X (75%) say they want to
be able to review any AI decisions around their finances. And 7 out of
10 Americans (70%) want to see regulation around AI in general.

“ I would be okay with using AI in fintech, as

long as I knew exactly how it was helping me
manage my spending and how it was obtaining
the information.

Plaid-commissioned survey through Opinium conducted on April 17 – 23, 2023 for purpose of understanding trends in anti-fraud work.
41 // FINDING 8
Why it matters What fintechs can do

Half of consumers (50%) expect AI to make 1 Start with the right use case

them smarter and more in tune with their Start using easy-to-adopt tools or experimenting in sandbox environments 

finances. And that could very well be true—as to identify which new features will have the biggest impact.


AI can help scale personalization across

fintech apps and bring tremendous information 2 Use AI for personalization

to bear. But fintechs need to implement it with Leverage AI to analyze consumer finances, make smarter and more
care. Using AI to make financial decisions personal recommendations, and ultimately build more impactful 

without consulting consumers would, at the financial tools.

very least, hurt relationships and trust. 


As AI becomes increasingly ubiquitous, 3 Implement safeguards

fintechs have the chance to use it to improve Use simple language to explain AI features while allowing consumers 

consumers' daily lives in ways we’re just to opt into and out of them easily. To ensure AI models operate without 

beginning to understand. bias—start incorporating diverse and inclusive data.

42 // FINDING 8
The Fintech Effect | 2023 Consumer trend report

Findin g 9

Wall Street wins the race

Consumers go all in on
traditional investing while crypto
takes a breather

43
Behind the numbers

Consumers are looking to invest. In our survey,

nearly half (46%) said they are actively
engaged in or planning to start stock trading in
the next 12 months. Both Millennials and Gen X
are equally engaged, with 50% showing similar Current and future use of financial services
interest. At the same time, Boomers say they’re
I don’t use this now, but plan to in the next 12 months I use this now, and plan to continue in the next 12 months
slightly less inclined (40%) towards the stock
market than Millennials and Gen X. 

Another 42% of Americans are turning to tools 15%

17%
like high-yield savings accounts and mutual 19%
funds. Adoption rates across generations are 31% 11%
25% 12%
mostly similar for these investments compared
to traditional stocks. Millennials (46%) and Gen 17% 19%
12%
X (49%) lead the charge compared to Gen Z
(29%), but these investments are slightly less Stock market
 High-yield savings,
Investing in
 Cryptocurrency
 Non-fungible tokens

popular with Boomers (35%). trading mutual funds, etc. real estate apps (NFTs)

44 // FINDING 9
When it comes to non-traditional investments, 6 in 10
consumers say they’re skeptical about cryptocurrency
and don’t see it as a sound investment in today’s
economy. In contrast, we see consumers looking to real
estate as a more tangible and reliable investment, with
71% favoring it over cryptocurrency. But while 7 in 10
consumers would prefer real estate over cryptocurrency,
59% feel that real estate is out of reach for them. This
data underscores a prominent trend: consumers want to
make their money work for them, but volatile markets
and high upfront costs remain their biggest obstacles. 

While consumers have cooled on crypto, it’s anything 


but dead. Compared to many other traditional vehicles,
cryptocurrencies' low entry points and fractional buying
options are a massive competitive advantage in today’s
economy. feel like investing in real estate is out of reach
given the current housing market

48 // FINDING 9
Why it matters What fintechs can do

Fintechs have the potential to continue to revolutionize the investment 1 Offer comparison tools

landscape, even for traditional investment avenues like high-yield savings Give consumers the ability to compare different
accounts. By allowing consumers to start investing with very small amounts high-yield savings accounts based on interest
of money, fintechs can make it easier for the next wave of investors to rates, fees, withdrawal limits, and reviews. 

participate in investment activities traditionally reserved for those with 


more capital. 

2 Integrate financial tools


Give consumers the full picture of their
For industries like proptech, offering tools and resources to help Americans finances and make it easier to allocate funds
improve their credit scores will be critical to helping consumers unlock for investing by integrating with budgeting
better mortgage rates and terms—putting real estate back within arm’s apps or bank accounts. 

reach. Cryptocurrency platforms can also make the most of the latest
trends by focusing their marketing on how crypto unlocks more investment 3 Make it easy to diversify

avenues. This is especially true for younger generations that might be Allow consumers to diversify their investments,
priced out of traditional asset classes like real estate but are tech-savvy 
 balancing traditional options like real estate
and open to newer forms of investments. and high-yield savings with newer ones 

like crypto.

46 // FINDING 9
“
Public is an investing platform where

members can build a portfolio of stocks,

Treasuries, ETFs, crypto, and alternative

assets—with any amount of money, all in

one place.

MaryAlexa Divver, Head of Product Watch video

Building a better financial future, together

At Plaid, we continue to sit at the intersection of consumers and the

financial services they use. In this year’s edition of The Fintech Effect, we
see more consumers using more financial apps to manage their financial
lives—showing remarkable resilience and a clear eye towards the future. 

In order to reach the next wave of fintech consumers, we need to continue

to work together and collaborate across the digital finance ecosystem. By
doing so, we won’t just make it possible for consumers to complete nearly
all of their financial tasks using fintech—we will help deliver a more open
and equitable financial system that works for everyone. Helping today’s
consumers navigate an unpredictable economy while leveraging the new
frontier of real-time payments, AI, identity verification, and credit is the next
step on that journey towards unlocking better outcomes for all.
How Plaid can help

Plaid powers the digital finance ecosystem by connecting the world’s

leading companies with hundreds of millions of consumers for easier,
faster, and more secure user experiences. From fast-growing startups to
innovative neobanks to global enterprises, thousands of companies rely on
Plaid to onboard more customers, fight fraud in real time, and move money
safely and securely across the rails of their choice. Today’s consumers
expect financial services to be quick, simple, and secure. Plaid solves this
by helping them safely connect their financial accounts to apps, verify their
identity in 10 seconds or less, send and receive payments, and seamlessly
navigate the world of financial services so that they can focus on reaching
their financial goals. 

Get started at plaid.com