Consumers and small businesses overwhelmingly say fintech delivers better financial tools and experiences than traditional banks, according to a new “State of Fintech” survey released by the Financial Technology Association in partnership with Morning Consult.
By the numbers: The survey found that:
- 96% of consumers and 98% of small businesses report high satisfaction with fintech products and services.
- 79% of consumers and 95% of small businesses say fintech better meets their financial needs and gives them a greater sense of control than traditional financial institutions.
- 86% of consumers and 95% of small businesses say fintech improved their financial well-being.
- 94% of small businesses are likely to recommend fintech tools to peers.
“The fintech industry continues to deliver easier-to-use, more transparent, and lower-cost financial products that American consumers and small businesses love to use,” said Penny Lee, President and CEO of the Financial Technology Association.
How fintech is being used: The survey highlights how deeply fintech has become embedded in both personal and business financial routines:
Consumers:
- 88% use payment apps like Venmo, Cash App, or PayPal.
- One-third engage with mobile banks or neobanks.
- Nearly one in four use Buy Now Pay Later (BNPL) services.
Small Businesses:
- 93% use online payment platforms.
- 52% use digital lending platforms.
- 44% rely on accounting and bookkeeping software.
- 72% say fintech tools help them process customer payments online.
Why it matters: Small businesses, in particular, view fintech as a critical operational advantage. 70% report fintech tools reduce time and costs, and 90% say they offer services traditional banks don’t.
Respondents cited ease of use, speed, lower costs, and clear pricing as top reasons for trusting fintech. 85% of consumers and 90% of SMBs report high trust in fintech providers, with transparency and user control ranking as key trust drivers.
The big picture: Despite only 33% of consumers and 55% of SMBs saying they’re familiar with the term “fintech,” usage rates are high, with more than half of consumers and 81% of small businesses using fintech at least weekly.
The findings suggest that fintech platforms are not just competing with traditional banks, they’re outpacing them in delivering the kind of digital-first financial experiences that users want.
“Fintech is the essential ingredient powering Americans’ financial lives,” Lee said. “This survey makes it clear that consumers and businesses alike see fintech not just as an alternative, but as a preferred financial partner.”
