Consumers are increasingly aware of newer fintech firms, but is it translating to new assets?
Tech-powered offerings from new entrants now lead those form traditional financial services firms. Still, only a few are converting that awareness into significant business, according to a new report from Hearts & Wallets. 
Nearly 80% of U.S. households are aware of these tech-powered saving solutions, up from 36% in 2015. New entrants focus mainly on saving, crypto, and lending, while tech offerings from traditional firms mainly emphasize investment, planning, and financial advice.
Awareness of new entrants is now higher than new offerings from established firms. In 2020, that awareness was tied. Not surprisingly, awareness of new entrants is higher for younger households, especially those under 35.
Robinhood, Chime, SoFi, and Acorns lead in new fintech, while JP Morgan Wealth Plan and Marcus by Goldman Sachs lead in traditional firm offerings.
Robinhood also leads in awareness for households with $1 million or more in investable assets and households with $100,000 to $1 million. Marcus by Goldman Sachs tops new offerings from established firms in awareness among households with $1 million-plus in investable assets.
“Awareness of these new solutions is up and growing,” Laura Varas, Hearts & Wallets CEO and founder, said in a statement. “With higher interest rates, consumers are receptive to ‘cash’ and saving capabilities, which seem new after 10 years of interest rates at zero. Offerings that emphasize these ‘new’ capabilities in their positioning and promotion are generating higher awareness than offerings that do not, but scale is what matters when converting awareness into trial.”
Converting Awareness Into Customers
One in four households has put money toward tech-powered saving and investing solutions, up from 6% in 2015.
They’ve also often tried more than one. A handful of leaders are acquiring a significant number of new customers, including Robinhood, Chime, Sofi, and Acorns (new entrants), and JP Morgan Wealth Plan, Marcus by Goldman Sachs, Fidelity Go, and Wells Fargo Intuitive Investor in new offerings from existing firms.
“Traditional financial services firms should analyze the competitive opportunities and threats of increasing consumer consideration of new solutions, especially firms currently without such offerings,” added Amber Katris, Hearts & Wallets Subject Matter Expert and report co-author. “Partnering to provide these offerings may make sense when considered in relation to your firm’s capabilities and current competitive position and can offer the scale required to convert awareness into monied trial.”
