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New Primary Relationships At Fintechs Are Surging

Fintechs now account for 40% of new banking relationships, up from only 29% three years ago. That’s according to latest annual Curinos US Shopper Survey, which also revealed that only three brands – CashApp, PayPal and Chime – accounted for fully 60% of all new fintech and direct-bank relationships 

Chime has performed well over the last few years because it’s been a leader in providing early paycheck access and its overdraft/NSF policies are more customer-friendly. But the surprising emergence of CashApp and PayPal as primary-checking providers should be a cause for concern for traditional banks and credit unions.  

Consumers choosing fintechs are largely from the mass market, so they generally have lower deposit balances and are less profitable. But financial institutions can ill afford to cede the mass market because, collectively, it helps pay for the expensive branch and technology infrastructure required to support all segments. 

New Primary Checking Accounts Opened, 2020-24​

Traditional banking institutions are rapidly losing ground to digital competitors, most notably in the mass market segment​

Source: Curinos Customer Knowledge | 2020/2021/2022/2023 US Shopper Survey. Each year, the Curinos US Shopper Survey contacts consumers in more than 70 markets who have switched their primary bank relationship within that year. ​

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