Skip to main content

Financial Advisors Pushed Aside

ARLINGTON, Va.— A new report suggests more consumers are turning to fintech apps rather than financial advisors to manage their money, and that the trend will only increase as artificial intelligence becomes more mainstream.

“Fintech apps have simplified financial management and their capabilities are expected to be amplified with AI,” Capterra stated in releasing its analysis.

According to Capterra’s 2023 Fintech Survey of more than 870 consumer fintech users, 60% of respondents now seek advice from personal finance tools before reaching out to financial professionals. Furthermore, 64% of fintech users feel that these tools have significantly reduced their reliance on financial advisors, Capterra said.

Rapid Advance

“Fintech has rapidly advanced within the last few years, changing how traditional financial services are offered and how consumers manage their finances,” Max Lillard, senior finance analyst at Capterra, said in a statement. “While fintech won’t make advisors obsolete anytime soon, financial professionals need to adapt to changing consumer behavior and play up their strengths by augmenting their services.”

Capterra Chart

The Survey Findings

Capterra reported the survey found:

  • Millennials and Gen Z account for over half (55%) of fintech app adopters. They are empowered by user-friendly interfaces, data visualization tools, and real-time notifications, Capterra said.

  • The most popular solutions for fintech users include banking (82%), payments (63%), and personal finance management tools (57%).

  • Overall, 73% of fintech users actively use between two to five tools, which include everything from do-it-yourself investing apps to AI-powered planning tools.

  • Despite the high adoption of these apps, some fintech users still prefer an accountant to handle tax planning and preparation (47%), estate planning (42%), auditing and assurance services (34%), and business consulting (28%), Capterra said.

  • A “whopping” 89% of fintech users say they’ve encountered challenges while using apps. Security is the top concern, with 41% worried about the safety of their personal and financial information. Users also encounter hidden costs and technical issues, Capterra said.

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

Unlocking the Future: How Generative AI is Transforming Credit Unions

  Unlocking the Future: How Generative AI is Transforming Credit Unions In the rapidly evolving financial landscape, technology plays an increasingly pivotal role. Among the most exciting advancements is Generative AI, which is poised to transform how credit unions operate and serve their members. Read on to discover how generative AI can reshape the member experience and optimize operations within credit unions. What is Generative AI? Generative AI refers to a class of artificial intelligence that can create new content—such as text, images, and audio—based on existing data. Unlike traditional AI, which focuses on analyzing and recognizing patterns, generative AI synthesizes new information, offering exciting possibilities for financial institutions, particularly credit unions. The Applications of Generative AI in Credit Unions Personalized Financial Advice Credit unions pride themselves on their member relationships, and generative AI can enhance these connections....
Post a Comment
Read Complete Article HERE>»

Sunday Reading - What is the Declaration of Independence?

What is the Declaration of Independence ? The Declaration of Independence is the founding document that formally announced the American colonies' break from British rule. It laid the philosophical and moral foundation for American democracy, asserting that individuals possess inherent rights and that governments must be accountable to the people ( read summary here ). Although Thomas Jefferson is often remembered as the sole author ( read initial draft ), extensive collaboration shaped the Declaration. Benjamin Franklin and John Adams made small but impactful revisions— including Franklin’s reported suggestion  to change “We hold these truths to be sacred and undeniable” to “self-evident”—before submitting the draft to Congress. On July 4, 1776, the final text was adopted and sent to printer John Dunlap, who produced an estimated 200 broadsides that night—but that wasn’t the actual day of American independence . Congress had voted for independence two days earlier, ...
Post a Comment
Read Complete Article HERE>»

👨‍👩‍👧‍👦 You Need to Prepare Now to Compete for New Fed Gov’t Funded Savings Accounts for Children

WASHINGTON–Credit unions, which often talk about the need for younger members, will now have the opportunity to compete in a new arena for the youngest members of all, as the recently passed reconciliation bill includes language creating and funding for a new savings account for children, with a one-time deposit of $1,000 from the federal government for those born in 2025 through 2028. The new accounts are expected to create a new battleground of competition for credit unions as every provider from banks to fintechs to others seeks to capture the accounts.  The final version of the bill makes the tax-free savings accounts for minors, called Trump accounts, a form of individual retirement account (IRA) under Sec. 408(a), according to the Journal of Accountancy. Under the legislation, the accounts will be IRAs (but not Roth IRAs) for the exclusive benefit of individuals under 18.  About the Contributions “Contributions can only be made in calendar years before the beneficia...
Post a Comment
Read Complete Article HERE>»

Open Banking To Hit $94B By 2029—But U.S. Lags Amid Global Surge

Watch our Video on Understanding Open Banking NEW YORK—By 2029, open banking is projected to surge globally to a staggering $94.14 billion in value. Yet despite its rapid evolution and expanding global footprint, adoption remains uneven—hindered by inconsistent regulatory frameworks across countries. According to GlobalData, this disparity poses a key challenge for the sector’s success, with the U.S. notably trailing behind global peers in embracing open banking. The U.K. pioneered open banking and continues to be one of the leaders globally. The country has seen the number of users increasing, with there being 12.09 million active users of open banking in 2024 and 223.9 million payments made. This is an increase of 72% compared to the year before. “As open banking continues to flourish, it is positive to see that the Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR) have outlined how open banking can expand further in the U.K., and also be used in variable...
Post a Comment
Read Complete Article HERE>»

Live Podcast with Bonnie Sensing, Executive VP of Nashville Firemen's Credit Union on BSA

Jo in us in this live episode as Grant Sheehan, CCUE | CEO of the National Council of Firefighter Credit Unions (NCOFCU), interviews Bonnie Sensing, Executive VP of Nashville Firemen's Credit Union. We break down the BSA complex regulations, explore BSA compliance strategies, and discuss real-world implications for directors and staff. BSA Podcast YouTube NCOFCU Podcasts  
Post a Comment
Read Complete Article HERE>»