A RateHub report examining FinTech trends in 2017 found that there is a generational divide when it comes to trust in the emerging technology.
Nearly twice as many millennials (44 percent) and Generation Xers (42 percent) said they trust robo-advisors, compared to baby boomers (23 percent).
Forty-seven percent of millennials and forty-eight percent of Gen Xers trust marketplace lenders, compared to 23 percent of boomers. Fifty-one percent of both generation Xers and millennials reported using a comparison website to compare financial products — more than four times the number who consulted an industry professional. In comparison, 63 percent of millennials and 60 percent of Generation Xers trust rate comparison websites, versus 42 percent of boomers.
“Canada’s major banks have helped bolster consumers’ trust in services like online banking and contactless payments,” said Alex Conde, director of content marketing at Ratehub.ca. “However, it’s interesting to see that the boomer generation is the least likely to trust in new FinTech services. This may be because many boomers have been accustomed to consulting traditional financial institutions and industry professionals throughout their lives.”
Canadians of all ages had more trust in FinTech products and services endorsed by financial institutions. Online banking and contactless payments were the two most trusted FinTech offerings this year, capturing the trust of 85 percent and 62 percent of Canadians on average.
The report also examined general trends among Canadians, including the fact that 40 percent of all respondents don’t believe their financial institution would offer the best rate for any financial product, and that 59 percent of respondents believe it will be harder to qualify for a mortgage in 2018.
To conduct the report, RateHub conducted an online survey of more than 1,000 Canadians in November 2017 to ask them about their personal finance habits.
Access the full report here.
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