Are Banks & Credit Unions Losing Out on Savings Apps?
Americans desperately need help saving money, and fintechs are stepping up with intuitive apps that make saving simple and automatic. As consumers now funnel billions of dollars into these apps, banks and credit unions that don’t join the crowd could be missing out on a big opportunity.
As of October 2019, the U.S. personal savings rate stood at 7.8%, according to the St. Louis Federal Reserve. And a survey by Bankrate found that 40% of Americans can’t come up with $1,000 to handle an unexpected emergency.
Fintechs, and a few innovative banks, are now answering the call with new apps that use artificial intelligence to analyze users’ accounts and automatically move small amounts of money into savings.