BROOKFIELD, Wis.–Satisfaction with finances remains elusive for most consumers, according to the latest quarterly consumer trends survey from Fiserv
The survey found just 37% of consumers are satisfied with their financial health, and nearly one in three consider money management a burden. As a result, the “Expectations & Experiences: Household Finances” highlight opportunities for services that address money frustrations and offer enhanced security, convenience and consolidated financial management consumers would embrace, the company said.
“Although money management remains a challenge for many households, there is an openness to new ways of doing things,” said Devin McGranahan, senior group president, Billing and Payments, Fiserv. “While consumers already rely on mobile access and transaction alerts, financial institutions and billing organizations can create more intelligent experiences that build loyalty, instill confidence and improve financial management through enhanced bill payment reminders, real-time payments and instant fraud alerts.”
Among the findings:
- Of the 30% of consumers who think managing their finances is a burden, 59% perceive the task as an obligation and 47% say it is a reminder of financial difficulties.
- More than one-in-10 consumers have taken a cash advance or short-term loan in the past year, with 38% saying they would have difficulty or be unable to repay a $500 loan today.
- Consistent with last year, satisfaction with financial well-being (37%) continues to be rated lower than emotional health (54%), social life (45%) and physical health (44%).
Security Spurs Shift in Perception, Adoption
In other findings, Fiserv reported:
- Less than three years into wide availability of EMV cards, inserting a chip card is now the most preferred way to pay (36%), topping other forms of payments such as swiping a card (30%), cash (17%), and check (8%). Relative to the previous year’s survey, chip cards made significant strides in preferred method of payment (up 9%age points to 36%), perception of convenience (+12 to 32%) and fastest payment method (+9 to 24%).
- Transaction alerts are received by nearly two in three consumers (64%) with a credit or debit card. A sense of security (67%) and previous fraud (43%) are the most common reasons for using transaction alerts, while a third of consumers (33%) cited it as a convenient way to manage transactions. Millennials (ages 18 – 37) were more likely to receive alerts because it’s a convenient way to manage transactions. Among all consumers who receive alerts, 42% say they have detected fraud via alerts.
- Use of mobile apps to track spending jumped 7%age points from 2015 to 26%. More than twice as many early millennials (60%) use mobile apps to track spending. Conversely, use of checkbook registers declined 5%age points to 44% over the same period (49% in 2015), primarily driven by boomers (66% in 2015 as compared to 57% in 2017).
- Presented with potential tools that would be helpful in managing finances or investments, 34% of consumers and 48% of millennials said the ability to manage all their financial accounts using a single online location or app was of interest. Although aggregation services are considered the most helpful way to manage finances or investments, few consumers currently use such services to track spending (8%).
Consumers Open to New, Innovative Solutions
Looking to potential market opportunities with members, the Fiserv survey found:
- More than one in three (35%) consumers would be interested in the ability to transfer funds from one ATM to another, and 62% of millennials report interest in this option.
- Cardless cash solutions for ATM withdrawals appeal to nearly two in five consumers (37%) and over half of millennials. Just 7% already use this service, and 22% would only use in an emergency (e.g., a forgotten wallet), while 16% feel it would keep others from accessing their PIN, and 6% would do so to avoid carrying their debit card.
Consumers indicated interest in solutions that both protect and ease the money management process, with 66% of consumers saying they would be interested in a security program to safeguard mobile activity, while 56% indicated interest in voice, fingerprint, palm or retina scan to verify identity when banking online or using a mobile device instead of passwords or PINs.