Fintech is no longer just a buzzword, but a standard or even a fundamental way of banking, according to Visa’s 2024 Global Consumer Segment Analysis.
Digital natives expect financial institutions to break away from tradition and offer innovative, instant solutions. These smart consumers are not tied to a specific provider, they manage 7-8 accounts across their current, savings and pension accounts, use multiple digital apps and even different crypto exchange providers.
While digital consumers are receptive to a variety of financial solutions, they are not homogeneous in their approach to fintech. For card issuers, staying relevant requires choosing partners that are aligned with these tech-savvy customers.
Visa’s 2024 Global Consumer Segment Analysis surveyed more than 13,500 consumers around the world and found 3 different types of fintech consumers, which we’ll explain.
Fintech Leaders (Big Spenders)
Young, affluent consumers are embracing a variety of payment methods, from cryptocurrencies to cross-border payments. The technology revolution in banking is enabling these “fintech pioneers” to reap benefits and manage their finances in an efficient way that doesn’t disrupt their lifestyles.
Fintech entrepreneurs (average age: 33) are a more affluent group than other consumers, with spending more on luxury than essentials. Their spending is evident on food, travel, and concerts, which satisfy their need to impress.
Their lifestyle attitudes are both inward-focused and outward-focused, with three-quarters looking for ways to improve themselves, and a similar proportion willing to pay more for sustainable products.
Fintechs are looking for the latest and greatest innovations, with 81% of them preferring to try new forms of payment. Most (54%) use digital wallets and apps, while a small number prefer credit cards (15%) and travel/cross-border payment accounts (10%).
These payment methods attract entrepreneurs because they are new and come from brands that entrepreneurs want to support. They also like the efficiency, points and rewards.
Digital Rewards Seekers (A Mix of Luxury and Pragmatism)
The oldest of the three groups, with an average age of 38, they track their income and expenses closely to control their spending. They are not overly cautious with this spending, but they like to balance a touch of luxury with their rationality. They are a group that lives by the principle of the “now moment,” preferring products and services that provide the greatest immediate value and benefit.
The reward-seeking digital natives’ approach to banking is a mix of old and new. While these consumers rely heavily on traditional savings and retirement accounts, 86% are comfortable with their accounts being digital.
Lifestyle considerations are also key. They place a higher value on self-improvement than “fintech pioneers,” with 81% of “reward-seeking digital natives” citing this as an important trait. Three-quarters of consumers in this group want to buy products from brands that support worthy causes.
Their preferred exchange method is debit/prepaid cards, preferred by 55%, followed by credit cards at 16% and credit/prepaid cards at 10%. Rewards-seeking digital natives love the simplicity, convenience, speed and security these methods offer, as well as the rewards and points they earn.
Tech-savvy pragmatists
Tech-savvy pragmatists—average age 35—are keen on managing their finances. They manage their spending in small increments, and prefer simple, straightforward solutions that consolidate their accounts in one place. Nearly three-quarters (72%) prefer to plan everything in advance. But planning doesn’t mean being stingy. Sixty percent of this group believe that “money is for treating yourself now.”
Like digital reward seekers, tech-savvy pragmatists prefer the simplicity and convenience of checking and savings accounts. For many of them, these accounts are where their savings and income are kept. They don’t want to constantly check for new fintech solutions, or risk technical glitches that could jeopardize their finances.
This segment of consumers prefers to use credit/prepaid cards (33%), digital wallet apps (26%), and cash (16%). This combination indicates that they are embracing old ways of spending while remaining open to fintech and new payment methods.
How do FinTech consumers think?
Fintech is transforming not only financial transactions, but also consumer expectations. Fintech buyers are tech-savvy consumers looking for convenient, personalized, and secure financial services. They prioritize speed, seamless user experiences, and data privacy.
These consumers embrace innovation, and want advanced features and self-service tools that enable them to manage their finances independently.
To succeed, fintech companies must prioritize these needs and continually adapt to the evolving demands of this unique market.
Key aspects of the fintech buyer mindset: Convenience and speed: Modern consumers expect real-time transactions, 24/7 accessibility, and fast customer service. Personalized experiences: Consumers want personalized financial solutions that anticipate their unique needs and provide a seamless experience across platforms. Security and privacy: Buyers prioritize data protection, privacy guarantees, and proactive fraud prevention. Trust and credibility: Brand reputation, regulatory compliance, and transparency in communication are critical to building trust with consumers. Innovation and self-service: Users crave advanced features, tools that aid independent decision-making, and platforms that adapt to market trends.
Keeping up with FinTech Consumers
As digital consumers continue to grow in their wallets and expectations of the financial solutions they use, card issuers must anticipate and exceed their demands.
In the new era of banking, understanding these dynamic customers and designing products around the most digitally savvy customer segments is critical. Card issuers need a partner that enables them to implement flexible services and technologies, and leverage the power of data analytics, personalization, artificial intelligence and top-notch security.
