Access to financial services

Ipsos in Switzerland, based on a successful cooperation with additiv, a global leader in Fintech and embedded finance, is delighted to share the findings of 2024 Embedded Finance Consumer Study “How consumers access financial services”.

4,500 consumers across 10 countries provide an unparalleled look into interaction habits with financial services in a rapidly evolving digital landscape.

Consumers increasingly trust non-financial brands for their finance needs, pressuring traditional financial institutions to innovate.

• Super apps, retailers, e-commerce platforms, utility and telecom providers are increasingly trusted to deliver financial services, compelling traditional financial institutions to embrace embedded finance.
• There is a substantial unmet demand for professional investment advice, with many consumers preferring a hybrid model that combines digital channel convenience with access to human advisor on-demand.
• A majority of consumers are open to switching financial service providers, especially when incentivized, adding further pressure on traditional financial institutions to rethink their digital strategies and value propositions.

This study takes a closer look at consumer engagement with financial services, exploring the dynamics of loyalty and trust, the openness to switching providers, and the appetite for investment advice. A standout revelation is that, whilst consumers trust and regularly use online bank accounts, they are open to switching financial service providers, especially if incentivized. A significant portion of consumers show high appetite for receiving investment advice and willingness to consider financial services from non-traditional providers, highlighting the growing importance of embedded finance solutions.

Key findings include:

• 71% of consumers trust banks to deliver regulated financial and investment services, but nearly half also trust super apps, e-commerce sites, retailers, utility and telecom providers to deliver these services.
• 62% of consumers would consider switching their financial service provider, although only 20% would switch without an incentive.
• 68% of respondents cited “cost or service price” as one of their top three reasons for switching financial service provider, followed by incentives like bundled services and cashback (57%).
• Only 39% of consumers had received investment advice in the past 12 months, but 63% would like advice in the next 12 months. Of those that do not want professional investment advice, 31% believe their income isn’t high enough to save or invest.
• Consumers’ first choice is to receive investment advice from a human advisor, but a significant proportion (34%) prefer a hybrid approach and only 24% prefer fully digital advice.
• 85% access traditional bank accounts online at least quarterly, but 40% almost never use dedicated portals for online pensions, life insurance, health insurance, investments, or advisory services.
• 84% of respondents in South-East Asia use a super app on a weekly basis, compared to only 30% in Europe.
• 59% of respondents had used goal-based saving in the past 12 months, ranging from over 70% in Southeast Asia to 35% in Germany. Saving spare change (round-ups) were also more popular in South-East Asia and Middle East than Europe.
• Trust into companies providing financial services is created by a multitude of factors, with top reasons varying across countries between reputation, customer service and family and friends relationships.

Access to the detailed report: https://www.additiv.com/insights/embeddedfinance2024/

Contact persons by Ipsos Switzerland:

• Francesca Leoni, Associate Client Director, Market Strategy and Understanding
• Joël Degrandsart, Head of Department Market Strategy and Understanding