PLANADVISER - November/December 2021 - 6

data points //
Fintech and Retirement Savings
This technology continues to influence DC plan engagement decisions
F
inancial technology, or fintech,
refers to using technology to
improve the financial services
industry. In the retirement plan
industry, what is learned via fintech
is being leveraged to improve participant
experiences and financial wellness
initiatives. From Mint, which,
in 2006, before being purchased by
Intuit, introduced website- and appbased
budgeting,
to
more
recent
entrants, the popularity and influence
of fintech providers continues to grow.
Fintech has broad acceptance
among younger people. As digital
natives, younger generations are more
open to digital-first ways of managing
their finances. Results from the 2021
PLANSPONSOR Participant Survey
indicate that 87% of respondents ages
23 through 29 reported using some sort
of fintech, and that percentage also
holds for the 30 through 39 age demographic.
The number drops to 75% for
the 40 through 49 age group and to
58% for 50- through 59-year-olds.
" The PLANSPONSOR survey also
suggests that the use of fintech has a
correlation to participants' engagement
with their [defined contribution (DC)]
plans, " says Brian O'Keefe, director of
research and surveys for PLANADVISER
and PLANSPONSOR and the survey's
co-author.
" Findings indicate participants
under 50 were twice as likely to
have taken action with regard to their
retirement savings in the past year. "
They were also much more likely to
take negative actions such as decreasing
deferrals or stopping contributions.
And, though the survey sample covers
only 1,197 individuals, ages 23 through
59, O'Keefe says it seems to support the
idea that those who embrace fintech
are more active savers. The success of
fintech products, particularly among
younger Millennial or Gen Z investors,
offers several lessons the retirement
plan industry can use to boost engagement.
-Beth Braverman
Fintech Apps/Services Used by Survey Respondents
Venmo
Apple Pay
Cash App
Google Pay
Coinbase
Robinhood
Mint
Acorns
Chime
Binance
SoFi
Stash
Cypto.com
PocketGuard
Webull
Betterment
Public
YNAB [You Need a Budget]
45%
38%
38%
34%
22%
22%
17%
14%
14%
11%
11%
11%
10%
10%
7%
6%
4%
3%
Does not use fintech services 29%
H
When Survey Respondents Started Using Fintech Products
2019 or earlier
2020
2021
37%
36%
27%
Money Saved by Respondents With Fintech Products
<$500
$500 - $5,000
>$5,000 - $20,000
>$20,000
48%
20%
18%
14%
Source: 2021 PLANSPONSOR Participant Survey
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PLANADVISER - November/December 2021

Table of Contents for the Digital Edition of PLANADVISER - November/December 2021

A Shift in the Tech Landscape
Strength in Diversity
Future Faces
A Workforce in Flux
Fee Models Are Shifting
Nonenforcement Policies
‘Window’ of Opportunity
PLANADVISER - November/December 2021 - Cover1
PLANADVISER - November/December 2021 - Cover2
PLANADVISER - November/December 2021 - 1
PLANADVISER - November/December 2021 - 2
PLANADVISER - November/December 2021 - 3
PLANADVISER - November/December 2021 - 4
PLANADVISER - November/December 2021 - 5
PLANADVISER - November/December 2021 - 6
PLANADVISER - November/December 2021 - 7
PLANADVISER - November/December 2021 - 8
PLANADVISER - November/December 2021 - 9
PLANADVISER - November/December 2021 - 10
PLANADVISER - November/December 2021 - 11
PLANADVISER - November/December 2021 - 12
PLANADVISER - November/December 2021 - 13
PLANADVISER - November/December 2021 - 14
PLANADVISER - November/December 2021 - 15
PLANADVISER - November/December 2021 - 16
PLANADVISER - November/December 2021 - 17
PLANADVISER - November/December 2021 - A Shift in the Tech Landscape
PLANADVISER - November/December 2021 - 19
PLANADVISER - November/December 2021 - 20
PLANADVISER - November/December 2021 - 21
PLANADVISER - November/December 2021 - 22
PLANADVISER - November/December 2021 - 23
PLANADVISER - November/December 2021 - Strength in Diversity
PLANADVISER - November/December 2021 - 25
PLANADVISER - November/December 2021 - 26
PLANADVISER - November/December 2021 - 27
PLANADVISER - November/December 2021 - 28
PLANADVISER - November/December 2021 - 29
PLANADVISER - November/December 2021 - Future Faces
PLANADVISER - November/December 2021 - 31
PLANADVISER - November/December 2021 - 32
PLANADVISER - November/December 2021 - 33
PLANADVISER - November/December 2021 - A Workforce in Flux
PLANADVISER - November/December 2021 - 35
PLANADVISER - November/December 2021 - Fee Models Are Shifting
PLANADVISER - November/December 2021 - 37
PLANADVISER - November/December 2021 - Nonenforcement Policies
PLANADVISER - November/December 2021 - ‘Window’ of Opportunity
PLANADVISER - November/December 2021 - 40
PLANADVISER - November/December 2021 - Cover3
PLANADVISER - November/December 2021 - Cover4
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