CHARLOTTE, N.C.–More than half of all consumers now have their bank/credit union account linked to another platform, according to a new survey.
Fifty-eight percent of consumers are linked to another platform or service, according to the latest survey of more than 1,000 Americans from LendingTree, which said it conducted the survey to understand how people are using connected accounts, their reliance on budgeting apps, reactions to data breaches and demographics on who’s using these features.
Key Findings
Among the key findings:
- Consumers link their bank accounts to platforms or services for mobile payments, budget tracking, investing and more. Fifty-eight percent of consumers say their bank account is linked to another platform or service, such as Venmo or Apple Pay. And those with a connected bank account have it linked to three platforms on average.
- Proponents of connected bank accounts would prefer to cut their banks out of the process altogether. Fifty-seven percent of those with a linked bank account would consider conducting their banking through a connected service instead of a traditional bank account, LendingTree reported.
- Data breaches don’t always deter consumers from connecting their accounts to other platforms. Nearly a third (32%) of those with a linked bank account have been involved in a data breach due to the connection. Yet, most (64%) continued to keep their account connected despite the breach.
- Innovations in banking apps help consumers stay on top of their finances. Nearly four in 10 consumers (39%) rely on budgeting apps to keep track of their finances. And 84% could name at least one banking app feature they would use.
- As big tech companies enter the banking world, younger consumers are especially interested. Fifty-three percent of Gen Zers and 48% of Millennials would be excited if their bank teamed with a company like Google or Apple, and 37% of those 40 and younger would rather bank with a fintech company than a traditional bank, the company’s survey found.
The Details
Looking at the data at a more granular level, LendingTree reported most consumers embrace linking their bank accounts to other platforms, particularly millennials ages 25 to 40 (70%) and those who earn $100,000 or more (69%).
“Among those who have at least one connected account, 79% have one to three connections. Interestingly, however, Gen Zers ages 18 to 24 are most likely to have three accounts connected (38%), though they are only the third-most likely generation to have a connected account at all,” LendingTree said in its analysis. “And people who earn $100,000 or more are significantly more likely to have four or more linked accounts than other income earners.”
LendingTree said it Fifty-seven percent of respondents say they’d consider using a connected app, like Venmo or Apple Pay, as their primary bank.
“This attitude seems more prevalent among younger generations: 75% of Gen Zers say yes, compared with just 20% of baby boomers ages 56 to 75. Men (69%) are also more likely to say yes than women (41%),” the company said.
Data Breaches
The survey found one-in-three people have been involved in a data breach associated with a connected bank account
“Millennials and men (40% each) are more likely to have been involved in a data breach than their generational and gender counterparts,” LendingTree reported. “But those who earn $100,000 or more (46%) are the most likely across all the demographics examined.”
The LendingTree survey found 74% of those who earn $75,000 to $99,999 say they kept their account linked, post data-breach — the most of any demographic. That was followed by those earning $100,000 or more and baby boomers (69% each).
Sixty-eight percent of consumers said concerns about data privacy keep them from connecting their bank account to potentially helpful apps or services. And those earning between $75,000 and $99,999 (78%) and Gen Zers (74%) are warier of this than others.
Popular Services
By a wide margin, fraud alerts are the most desirable feature among financial apps, LendingTree reported.