I just got a report from J Walter Thompson on the future of money and there’s some interesting facts and stats. Here are my headlines:
- 76% of millennials are looking for new forms of banking
- 40% of people in their twenties have downloaded a money management app
- 80% of millennials don’t invest in the stock market, as they don’t know how or think they don’t have enough funds
- Customers are more likely to pay with their smartphones in India (where 56% of customers say they regularly use mobile wallets for their purchases) and Thailand (51%), than they are in Spain (25%) or the United Kingdom (14%.)
- $5.8 billion was raised by blockchain companies from token sales in 2017
- 52% of Chinese consumers are familiar with bitcoin vs. 48% of Americans
- 86% of American and 66% of Chinese cryptocurrency users have used Bitcoin
- 98% of China’s 772 million digitally savvy consumers are accessing the Internet through their smartphones
- 90% of mobile payments in China took place via Alipay in 2016
- Chinese microlending is expected to swell to nearly $79 billion by the end of 2018
- Digital payments in India are expected to grow from $200 billion to $1 trillion in the next five years
The full report is called The Future of Money: New Payments, Currency, Banking, and beyond. Here’s the summary abstract:
The vast majority of 18-34-year-olds in the United States and China are moving away from cash. The Future of Money report shows that 63% of US millennial consumers hardly ever use cash, with 75% saying they want more diverse financial products that are more suited to their needs and lifestyles. US millennials are now twice as likely as baby boomers (aged 55+) to use alternative mobile payments and messaging payment apps such as Venmo.
New consumer attitudes are also continuing to be shaped by the shadow of the 2007-2008 global economic crisis. The report finds that 89% of US and Chinese millennials now prioritize long-term financial security.
The report also finds that the vast majority of Chinese (76%) and US consumers (72%) say recent high-profile data breaches have damaged their trust in major financial institutions. In addition, 76% of Chinese and 65% of US consumers, particularly women, say ethical behaviour is important when choosing a financial institution.
The report surveyed 2,000 consumers in total; 1,000 in the United States and 1,000 in China. China is increasingly driving innovation in money and payments. A staggering 77% of Chinese consumers say they are interested in alternative banking and payments. 61% of Chinese millennials say they would use the Internet of Things to access banking services (vs. 36% in the US). 47% of Chinese millennials are already using facial recognition as a form of financial ID (vs. 18% of US millennials). The report also found, however, that US millennials are catching on fast.
The Future of Money survey shows how open to advances in tech the average banking customer has become, particularly in China—40% of Chinese and 34% of US consumers say they would now interact with their bank using a smart speaker.
Chinese consumers are twice as likely to know about blockchain as US consumers, and twice as likely to have tried a number of other disruptive new payment systems, from microinvesting and microdonations to thumbprint, facial and voice recognition.
Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal's Financial News. To learn more click here...