Digital Banking | May 9, 2025

Image: Frequency of Use (Plaid x YouGov Money Talks survey report)

What Drives Digital Banking Choices?

Between August 20-26th 2024, Plaid commissioned a national survey through the YouGov platform to understand how U.S. consumers bank, pay, and invest.  The survey reveals insights of consumer preferences in digital finance, including trust in financial providers, app usage, payment methods, credit attitudes, and investment habits, based on weighted responses from 2,077 adults.  Fintechs, digital finance platforms, and financial institutions need to stay up to date with the latest retail digital banking trends if they want to compete for consumer loyalty.  Read 'Money Talks' (28 page PDF) report explaining these trends.  Below we break-down key insights for NCFA's readers.  Not yet subscribed?  Sign-up for NCFA's weekly newsletter here.

1. How Consumers Feel About Financial Services

Consumers continue to trust traditional banking institutions more than 100% digital platforms:

See:  Meridian CEO says Open banking is ‘an opportunity’ for credit unions

• Trust is highest in regional banks and credit unions (67%)
• Followed by community banks (61%)
• Large national or international banks (60%)
• Neobanks are trusted by only (30%) of the responders, however the number of people who trust neobanks is more than double the number who currently use them (13%), an indicator of future growth
• Cryptocurrency exchanges were trusted by only (18%)

Trust and security go hand and hand, and overall, trust comes from perceived care and protection:

• 58% of consumers said that two factor authentication (2FA) is a sign of a trustworthy app
• 47% strong encryption
• 41% if the app receives regular security updates
• Just 5% of the people say social media influencers increase their trust in a financial service.  In Canada however, the Ontario Securities Commission recently published a report called 'The Finfluencers Effect on Canadian Retail Investors' that has a different perspective.

See:  Retail Banking Platforms and VC Trends 2025

Consumers also shared who they rely on for financial well-being. The takeaway is that fintechs and advisory services must do more to be seen as helpful and caring, a useful partner in people’s financial lives.

• 39% trust their primary bank
• 30% rely on themselves
• 28% cite a partner
• 23% and 17% respectively for financial advisors and accountants

2. How Consumers Use Financial Apps and What They Expect

Online banking is the most widely used financial tool: 99% percent of consumers are familiar with it, and 74% use it weekly.

Other commonly used tools include savings apps (68% weekly or daily), budgeting tools (85%), and peer-to-peer payment apps like Venmo or Zelle (used weekly by 50% of users). Roboadvisors are accessed more than once per week by (80%) of their users but only 1% of all consumers report using them regularly.

See:  Canada Post Launches Postal Banking With KOHO

When asked what improvements they want most in financial apps:

• 33% of users said stronger security
• 30% said easier payments
• 29% wanted better customer support
• 25% want advice on credit building
• 23% saving money

60% of respondents said it is important to link their bank account with the financial apps they use.

Takeaway:  Apps that are integrated, responsive, and secure are the most likely to be used often. Fintechs and banks that overcomplicate services or create friction in setup risk being overlooked, even if their offerings are advanced.

4. How Consumers Invest and What They Want

25% currently invest in cryptocurrency. Another 21% say they plan to invest in crypto or NFTs in the next year. These responder levels of engagement are equal to the 25% of people who say they will invest in stocks or trading platforms during the same period.

See:  Larry Fink’s 2025 Fintech Vision for Capital Markets

Crypto investors are not limiting their exposure:

• 56% hold between 25% and 75% of their total investments in crypto
• 48% said they began investing after seeing friends make money
• 36% have belief in blockchain’s long-term value
• There were more responders that plan to invest in crypto than in bonds or mutual funds

Only 11% of respondents have used AI tools to support their investing decisions -> interestingly, this already exceeds the share of people using roboadvisors, suggesting that AI powered investment tools are gaining traction faster than traditional automated advice products.

Takeaway: Fintechs offering secure, easy to understand crypto access or AI investment tools can appeal to a growing investor base.  Banks that avoid crypto are at risk of losing relevance with younger and self-directed investors.

5. Credit and Payment Preferences

Debit cards are now more commonly used than credit by younger adults. According to EY data cited in the report, 69% of Gen Z use debit cards daily or weekly. Many say they avoid credit cards because they do not want debt or do not qualify.

See:  VoPay Launches Cross-border Payments-as-a-Service Platform

Buy now pay later (BNPL) services have grown 40% in usage since 2021.

• 42% of users choose BNPL to avoid credit card debt
• Others are drawn by merchant incentives and lower interest rates
• Preferences differ by income group. Those earning under $80,000 tend to avoid new debt, while higher earners are motivated by discounts.

Takeaway:  Only 30% of respondents believe their credit score accurately reflects their financial health. 55% said they have been denied a loan due to a low score. These figures support growing interest in alternative data, such as cash flow and account history, for lending decisions.

6. Why Traditional Banks Still Hold Ground

• 82% of consumers still use a traditional bank as their primary institution
• 13% use a digital-only bank
• 45% said they prefer having access to in-person support
• 45% cited security concerns with switching
• 36% said they simply do not trust digital-only banks

Older adults are especially cautious. People aged 66 to 70 are 55% more likely to mistrust digital banks than those aged 22 to 25. Younger adults are more flexible. Among respondents aged 18 to 24, 36% said they would switch banks for a better digital payment experience.

See:  Fintech Trends & Predictions Across Generations in 2025

Despite these trends, most people are not actively looking to change banks:

• 74% said they are satisfied with their current provider
• 22% said they would switch for the right reason, especially if the process were simpler

7. How Payment Methods Are Changing

Consumers use different payment methods based on transaction size and age group:

• For purchases over $1,000, 29% use credit cards and 25% use bank transfers.  Among people aged 22 to 25, bank transfers are the most used method for large purchases (39%)
• For purchases under $100, digital wallets like Apple Pay are commonly used
• Subscriptions are most often paid with debit (45%) or credit cards (38%)
• Older consumers are more likely to pay using ACH or direct bank transfers

See:  Crypto Enters the Core of Canadian Payments

To fund digital wallets:

• 41% of users use debit cards
• 24% use bank payments
• Among consumers over 66 years old, 33% use a bank transfer to fund their wallets

Takeaway: Fintechs that want to increase adoption of pay by bank options must improve the experience. According to the report, 49% of users say they are likely to use pay by bank if the account linking process is easy.

What the Data Means

Consumers want financial services that are clear, secure, and helpful, with trust remaining the most important factor in deciding whether to try a new app, share data, or switch banks. Traditional banks still hold an advantage in trust and reach but must modernize quickly. Fintechs have room to grow if they lead with transparency and value.  Financial institutions that support financial goals and offer simple, connected experiences will stay relevant in 2025 (and beyond).  Learn more about how consumers in the U.S. use, feel, bank, transact and acquire in 'Money Talks'.

The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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