When it comes to managing our finances, money mobility is a crucial aspect of how we expect to be able to pay out or be paid.
However, the experience can vary widely, and the size and type of financial entity we deal with doesn’t always reflect the money mobility experience consumers report.
What is Money Mobility?
Broadly speaking, money mobility is the ease with which account holders can move money in and out of their accounts.
This usually means that more ‘money in’ functions and more ‘money out’ functions lead to better money mobility.
The number of these methods that a FinTech offers tends to vary with its size, and FinTechs of all sizes tend to provide more ways to make payments and transfers than ways to put money into their accounts, such as via deposit.
To understand how well FinTechs are delivering on the promise of money mobility, PYMNTS and Ingo Money collaborated on the 2023 Money Mobility Index.
The study surveyed over 3,600 U.S. consumers to score FinTech issuers on the money mobility experiences they deliver, including the options offered for money movement.
The Correlation between Payment Alternatives and Customer Satisfaction
Analyzing money-in and money-out transactions seeking features contributing to customer satisfaction, the study found that the number of payment alternatives issuers offer is correlated to consumers’ likelihood of using services from nonbank providers and the corresponding satisfaction.
As the study states, “A closer look at the makeup of top-performing firms reveals that both large and small issuers are succeeding in customer satisfaction. Our study finds that 23% of the top-performing FinTech issuers generated more than $500 million in revenues, while 27% generated between $5 million and $10 million.
This data suggests that a firm’s size does not correspond to success, as the largest, those with more than $500 million in revenue, and the smallest, those with less than $10 million in revenue, we studied can both provide a better customer experience.”
The Benefits of Large and Small FinTechs
We found that the largest FinTech issuers “are the best at providing streamlined procedures to move funds into accounts: 57% reported that their customers face no problems when receiving funds.
The smallest firms are the best in providing convenience options, such as money-out tracking capabilities and notifications: 79% reported that customers faced no problems with each feature.”
The Bottom Line
In conclusion, money mobility is a critical aspect of the customer experience for any financial services provider.
The 2023 Money Mobility Index found that both large and small FinTechs are succeeding in customer satisfaction, indicating that size does not necessarily correspond to success.
As customers continue to demand greater flexibility and convenience in how they move their money, FinTechs that prioritize money mobility will be well-positioned to meet their needs and build lasting relationships.