Search
Close this search box.

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. ​

February 27, 2024

Want Small Business Deposits? Focus On Primacy

By providing small businesses access to credit and other services, banks can realize better performance in their overall deposit portfolios.
READ TIME: 1 MIN

February 22, 2024

CD Growth Still Strong, But Trend Line Has Gone Flat

Even though their growth may be slowing, CDs will continue to represent a substantial share of deposits and will be critical to a depository institution’s success.
READ TIME: 1 MIN

February 20, 2024

Wealth Clients Were Late To The CD Party And Will Likely Leave Early

Banks should adopt the high-touch, personalized engagement of wealth advisors by proactively reaching out to clients prior to maturity.
READ TIME: 1 MIN
  • Author
  • Want to go further?

    Contact us to learn more about how Curinos can help you navigate today and prepare for tomorrow.