Consumers Want an All-in-One Platform to Manage Their Finances While Businesses Invest in Future Forward Tech, According to FIS Study
15 August 2023 - 1:00PM
Business Wire
Key facts and findings
- FIS Financial Services Expectations vs Reality research asked
US and UK consumers about their personal financial decisions and
business executives’ investment and innovation plans.
- 47% of consumers said access to a single platform to manage all
their financial services activity from all their providers was
their top priority.
- 91% of financial services company executives in the US and 78%
in the UK say high interest rates are impacting their ability to
innovate and invest.
As financial services providers and consumers face continued
pressures from economic and market instability, FIS® (NYSE: FIS), a
global leader in financial services technology, has fielded new
research to explore how executives and consumers are responding to
the environment, and how they’re making their financial
decisions.
FIS’ Financial Services Expectations vs Reality research asked
consumers in the US and UK about how they are making personal
financial decisions, and their expectations of financial service
providers. It also asked financial services company executives
reciprocal questions about how, in reality, they are investing and
innovating.
The research revealed that high inflation and the rising cost of
living (83%), economic recession (79%), high interest rates (76%),
and lack of confidence in the financial system (54%) are all
weighing on consumers as they make financial decisions. Consumers
also said they would value a one-stop solution that would make
managing their finances easier.
Consumers want an all-in-one solution to manage their
financial services, but executives at financial services companies
are taking a broad-brush approach to investment and
innovation:
- 47% of consumers said access to a single platform to manage all
their financial services activity from all their providers was
their top priority when asked what features and services they were
most interested in using if offered by their financial service
provider.
- There was consistent interest across generations in having one
platform to manage all their financial activity, with every cohort
picking it as their top priority (Boomers 57%, Gen-X 50%,
Millennials 43% and Gen-Z 39%).
- While consumers expressed interest in using a single financial
services platform, only 51% of surveyed financial services
executives stated they plan to increase investment in the
“management of multiple accounts/financial services from different
providers” in the next 12 months.
“This research shows that despite consumers wanting to be able
to see and manage their financial services in a unified platform,
financial services companies are still taking a broader approach to
investment across fraud and risk mitigation, digital wallets,
generative AI, metaverse and other areas in equal capacity,” said
Tarun Bhatnagar, President, Platform and Enterprise Products at
FIS. “As embedded finance and open banking mature across the US and
UK, there is a significant market opportunity for financial
services companies to deliver a unique all-in-one platform
experience for their customers while uncovering new revenue
streams.”
While business executives at financial services companies said
that economic headwinds like high inflation and the rising cost of
living (86%), economic recession (84%), high interest rates (84%),
and systemic challenges to the financial system (84%) are impacting
their ability to invest and innovate, many intend to increase or
maintain investments in future forward technologies.
Business executives are taking a future forward approach to
investment with a broad-brush approach:
- 91% of financial services company executives in the US and 78%
in the UK say high interest rates are impacting their ability to
innovate and invest.
- However, 92% of executives across the US and UK said they plan
to increase or maintain investment in each of the following:
fraud/risk mitigation solutions, digital wallets, artificial
intelligence (AI) and machine learning technologies for processing
as well as 91% increasing/maintaining their investment in
generative AI and 87% in metaverse.
“Executives are telling us that they’re feeling the crunch of
the economic uncertainty every bit as much as consumers, which is
affecting how they are investing. From this research we can we see
many executives leaning into more future-looking tech like AI and
digital wallets,” Bhatnagar added. “Further, technology like
generative AI is extremely new and executives are just beginning to
explore how they can use it to create improved customer experiences
as well as enhancing self-service for those customers while seeking
novel ways to reduce operational expenses.”
About the FIS Financial Services Expectations vs Reality
Research
FIS conducted a survey of 4,000 consumers and 800 business
executives in the financial services industry in the US and UK in
May 2023. For the purposes of generational analysis, the survey
defined generations as follows: Boomers born between 1946-1964,
Gen-X born between 1965-1976, Millennial born between 1977-1995,
and Gen-Z born between 1996-2005.
About FIS
FIS is a leading provider of technology solutions for financial
institutions and businesses of all sizes and across any industry
globally. We enable the movement of commerce by unlocking the
financial technology that powers the world’s economy. Our employees
are dedicated to advancing the way the world pays, banks and
invests through our trusted innovation, system performance and
flexible architecture. We help our clients use technology in
innovative ways to solve business-critical challenges and deliver
superior experiences for their customers. Headquartered in
Jacksonville, Florida, FIS is a member of the Fortune 500® and the
Standard & Poor’s 500® Index. To learn more, visit
www.FISglobal.com. Follow FIS on Facebook, LinkedIn and Twitter
(@FISglobal).
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version on businesswire.com: https://www.businesswire.com/news/home/20230815126722/en/
Kim Snider, 904.438.6278 Senior Vice President FIS Global
Marketing and Communications kim.snider@fisglobal.com
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