A new special report from Morning Consult takes a deeper dive into public opinion on financial technology, an issue that’s likely to transform both the banking industry and how Washington regulates the finance industry. The data is drawn from a poll of 4,400 adults. Other stories in the series: Fintech Backers Tout Expanded Access to Financial Services, but Underserved Groups Aren’t as Interested | U.S. Lags China, Others in Payments Tech. One Reason: Boomers Strongly Prefer Cash, Cards
With a rush of post-pandemic spending projected by economists following more than a year of pent-up demand, financial firms such as banks stand to fare well, lending aggressively amid low interest rates and a huge flow of liquidity — just as they did, notably, right after the 1918 Spanish influenza pandemic.
But much has changed since 1918, and it’s not just banks and other storefronts that lend to American consumers. After the pandemic shifted everyday lives online, a new class of “fintech” lender could be well-positioned to capitalize on the growth in transactions the industry has seen during the pandemic and benefit from the economic recovery after widespread vaccination.
This should be concerning to the traditional banking sector, which has watched the growth of fintechs with alarm, as JPMorgan Chase & Co. CEO Jamie Dimon noted in a January call with analysts, using a word that can’t be printed in full here. To get a sense of Americans’ comfort in moving their financial life online and entrusting more of their economic lives to startup lending services, Morning Consult asked 4,400 U.S. adults if they would consider getting a loan from a fintech company.
At first glance, the results appear negative for fintechs: 34 percent said they would consider it, while 47 percent said they wouldn’t. The survey, which was conducted Feb. 12-15, has a margin of error of 1 percentage point.
But a closer look at the open-ended survey responses show that these lenders might have more of an edge than the topline numbers would suggest.