When it comes to managing our finances, money mobility is a crucial aspect of our expectation of being able to make payments or be paid.
However, experiences can vary widely, and the size and type of financial institution we deal with does not always reflect the financial mobility experiences reported by consumers.
What is money mobility?
Generally speaking, money mobility is the ease with which account holders can deposit and withdraw money from their account.
This usually means that more “money in” functions and more “money out” functions lead to better money mobility.
The number of methods a FinTech offers tends to vary with its size. And FinTechs of all sizes tend to offer more ways to make payments and transfers than ways to add money to their accounts, such as via deposit.
To understand how well FinTechs are delivering on the promise of money mobility, PYMNTS and Ingo Money worked together on the Money Mobility Index 2023.
The study surveyed over 3,600 U.S. consumers to rate FinTech issuers on the money mobility experiences they offer, including the money transfer options they offer.
The connection between payment alternatives and customer satisfaction
Analyzing deposit and withdrawal transactions to look for characteristics that contribute to customer satisfaction, the study found that the number of payment alternatives offered by issuers correlates with the likelihood that consumers use non-bank services and the associated satisfaction.
The study states: “A closer look at the composition of the top performing companies shows that both large and small issuers are successful in customer satisfaction. Our study shows that 23% of the top performing FinTech issuers generated more than $500 million in revenue, while 27% generated between $5 million and $10 million.
This data suggests that the size of a company is not related to its success, as both the largest, i.e. those with revenues of over $500 million, and the smallest, i.e. those with revenues of less than $10 million, that we studied can provide a better customer experience.”
The advantages of large and small FinTechs
We found that the largest FinTech issuers are “best at providing streamlined processes for transferring funds to accounts: 57% said their customers have no problems receiving funds.
The smallest companies are the best at providing convenience options like the ability to track withdrawals and notifications: 79% said customers had no issues with any of the features.”
The conclusion
In summary, money mobility is a crucial aspect of the customer experience for any financial service provider.
The 2023 Money Mobility Index found that both large and small FinTechs are successful in customer satisfaction, suggesting that size does not necessarily equate to success.
As customers continue to demand more flexibility and convenience in transferring their money, FinTechs that prioritize money mobility are well positioned to meet their needs and build lasting relationships.
