With bank branches closed, consumers turned to fintech apps to help them manage their finances. For many of them, this was the first time they’ve really turned outwards from their banking relationships. Others, though familiar with fintech, doubled-down on their usage of new digital finance software. With job losses and reductions of income, Americans turned to fintech.
Fintech adoption is increasing globally, according to the 2020 Fintech Report published by Plaid. The report, which surveyed 2000 people in the US, found that the majority of people used fintech before the crisis, but COVID-19 accelerated their usage of fintech for more financial tasks and with more frequency.
COVID-19 disrupted the processes and routines people had to manage their money. 59% of Americans said they use more apps and digital tools to manage their finances now versus before the pandemic hit. Even people who didn’t use fintech at all started to. 48% of non-users agreed that their usage had increased. Two-thirds (66%) also say they plan to use fintech more often for at least one financial task, from budgeting and saving to investing and paying off debts, as a result of the pandemic.
People are using more apps. During COVID, 13% of people reported they used more than 6 financial apps. That’s up from 8% before the pandemic.
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