IPSOS AFFLUENT INTELLIGENCE:

FINTECH: THE TECHNOLOGY

AND THE EARLY ADOPTERS
DISRUPTING FINANCIAL
SERVICES

© 2018 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may
not be disclosed or reproduced without the prior written consent of Ipsos.
IAI AND FINTECH

Understanding affluent influencers—Affluencers—is critical for all businesses, particularly those in categories
experiencing technological change and disruption. Deeply engaged in the categories they influence, Affluenc-
ers are the researchers and early adopters who road test new technologies and share their discoveries with
their networks. Affluencer recommendations and reviews drive most categories, and Financial Services is no
exception.
In fact, Financial Services is a perfect example of a category experiencing an unprecedented level of disrup-
tion, as new technologies replace traditional offerings. When categories evolve this rapidly, a small group of
early adopters lead the way for other consumers.
These early adopters are the experimenters who try new products and services—and eventually educate the
rest of us. To belong to this elite group, a person needs time, passion and the means to experiment.
Ipsos Affluent Intelligence has been studying these consumers for over four decades. We call them
“Affluencers”. (http://bit.ly/2Fj2nXa)
Michael Baer
SVP, Team Lead Ipsos Affluent Intelligence

The Importance of Affluencers The Affluencer Multiplier Effect

Affluent influencers—Affluencers—drive most categories. Affluencers

are enthusiastic consumers of category-related information and have
INFLUENCE PURCHASE
disproportionately high purchase intent. They’re heavy spenders who INTENT

are the first to try new offerings, and their networks depend on them for
reviews and advice. Affluencer recommendations may be the single
most powerful form of communications in any category.
SPENDING

This is what we call the Affluencer Multiplier Effect.

FINANCIAL AFFLUENCERS
Financial Affluencers are the affluent influencers to whom other consumers turn for advice on banking, investing
or retirement planning. It’s a sizable group, which IAI has projected to 19.8 million Americans.

It should come as no surprise that Financial Affluencers are likely to work in the financial world. Top professions
include:

Investment Banker Broker/Dealer/Trader Financial Planner Other Financial

(Index 333) (Index 250) (Index 240) (Index 240)

Financial Affluencers skew male and are slightly older than the overall affluent audience. While their median
household income is on par with that of other affluents, their median net worth is higher (Index: 117). They’re
self-described risk takers, innovators and entrepreneurs who influence a wide range of categories, most notably
the automotive category. Luxury and exclusivity seekers, Financial Affluencers expect a high level of personalized
service.

1
 THE FINANCIAL AFFLUENCER (ANY)
19.8MM AFFLUENT AMERICANS WHO INFLUENCE THE BANKING, INVESTING OR
RETIREMENT PLANNING DECISIONS OF OTHER CONSUMERS

PSYCHOGRAPHICS DEMOGRAPHICS

Financial Broker/Dealer/ Shop at Stores That

Planner Trader Gen-X 40%
Provide a High Level 165
(Index 240) (Index 250) Personal Attention

Boomer 27%
Other Investment
Financial Banker
(Index 240) (Index 333)
General 166
Size of audience: 19.8MM Affluencer Millennial 27% Senior 6%

Life of the Party 178

Female: 38% Male: 62%

Seek Out Exclusive
178
Products/Services

Employed
Full Time
125 Retired
Median HHI: $181K Consider Self an 185 100
Employed
Entrepreneur Part Time
75

Index
Median Age: 45
50

25
Owner/Partner: Index 141 Auto Influencer 193
0

Median Net Worth: $1062K

Source: Ipsos Affluent Survey Fall 2017; Psychographics: Two Two Box Agreement; All Indexes Against Total Affluent

Due to their category spending, Financial Affluencers are ideal consumers and a valuable target audience—but
they’re also the ones who introduce their friends, families and colleagues to new financial technologies and
services. Messaging targeted to Financial Affluencers will ultimately reach the ears of a much wider audience.

Financial Ultra Affluencers

The Financial Ultra Affluencer is a super-concentrated version of the Financial Affluencer. These are people to
whom others turn for advice in the realms of banking, investing and retirement planning. It’s a significantly smaller
group, with a projected size of 8.3 million Americans. They’re slightly older than the Financial Affluencer and have
a higher median net worth.

From a psychographic standpoint, Ultra Affluencers resemble Financial Affluencers, though their indices for key
measures are much higher. They, too, are likely to be financial professionals, though a few other professions rise
to the top, including Doctor/Dentist (Index: 271) and Management/Administration (Index: 196).

2
 THE FINANCIAL ULTRA AFFLUENCER
INFLUENTIAL IN ALL THREE REALMS

PSYCHOGRAPHICS DEMOGRAPHICS

Prefer Designer/ Gen-X 45%

185
Luxury Brands

Boomer 28%

General 185 Millennial 21% Senior 7%

Affluencer

Auto Influencer 207

Female: 33% Male: 67%

Seek Out Exclusive
217
Products/Services

Employed
Full Time
125 Retired

Life of the Party 223 100

Median HHI: $182K
Employed
75

Index
Part Time
50
Median Age: 47
25
Consider Self an
234
Entrepreneur
Owner/Partner: Index 153 0

Median Net Worth: $1183K

Source: Ipsos Affluent Survey Fall 2017; Psychographics: Two Two Box Agreement; All Indexes Against Total Affluent

Financial Affluencers: Attitudes and Behaviors

Like other category affluencers, Financial Affluencers are extremely engaged with the financial category, devouring
all manner of category content and information. Articles on websites and magazines are their most commonly
consumed media. Word of mouth and recommendations play critical roles in the financial world, and Affluencers
eagerly solicit input and advice from other experts (Index: 140) and enthusiasts. However, when it comes to their
friends and family, Financial Affluencers are significantly less likely to seek recommendations—and more likely to
be the ones offering guidance.

123
94 100 101
Any Financial
69 66 Financial Ultra

Seek Recommendations Seek Recommendations Seek Recommendations

from: Friends from: Financial from: Financial
and Family Advisor Industry Experts

3
When managing their own money, Financial Affluencers are less conservative than other affluents. Because of their
category experience and expertise, they’re more comfortable taking risks and working with new companies.

73% 72%
66%
65%
57% 56% 58% 59%
56%

43% 44% 44%

42% 41%
34% 35%
27% 28%

Total Any Ultra Total Any Ultra Total Any Ultra

Affluent Financial Financial Affluent Financial Financial Affluent Financial Financial
Affluencer Affluencer Affluencer Affluencer Affluencer Affluencer

Very Open to Prefer Financial Very Open to Working Prefer to Work with
Working with New Companies in with Financial Companies Financial Companies
Risk Taker Conservative Investor and Innovative Business for I Haven’t Worked with I’ve Worked with in
Financial Companies Many Years Before the Past

Source: IAI Q1 2018 Barometer

Compared to other affluents, Financial Affluencers are also significantly more open to experimentation. A sizable
number of them (27% of Financial Affluencers and 30% of Financial Ultra Affluencers) say they actively move in
and out of different investments rather than stick with investment choices—almost double the number of affluent
consumers who say so.

Total Total Financial Financial Ultra

Affluent Affluencer Affluencer Affluencer

16% 20% 30%

27%

84% 80% 73% 70%

I Make Investment Choices and Stick with Them I Actively Move In and Out of Different Investments
Source: IAI Q1 2018 Barometer

Financial Affluencers are always on the lookout for new opportunities, and they’re much more likely to express
interest in downloading new apps, working with a new advisor, or opening a range of new accounts in the next
twelve months. This makes them prime targets for most financial services marketers. They’re “low funnel” and
receptive to opportunities.

4
 Interest in Opening New Accounts/Financial Services
350
344
300

250 266
241 243
230
200
201
193 192 191 193
182 189 179
173
150
150 155

100

50

0
Opening a New Opening a New Opening a New Opening a New Working with a Opening a New Refinancing a Downloading a
Credit Card Checking or Brokerage or Stock Mutual Fund New Financial Digital-Only Mortgage or Taking New Payment
Account Savings Account Trading Account Account Professional Bank Account Out a Home Equity App
Loan

Any Financial Financial Ultra

Source: IAI Q1 2018 Barometer, Top Three Box: Somewhat/very/extremely Likely In Next 12 Months

ROBO-ADVISORS
IAI has been tracking robo-advisors since 2015, and until recently we had seen little movement in most awareness
and usage measures. While our 2018 data shows that consumer adoption of robo-advisors remains in the early
stages, signs of a significant opportunity have appeared on the horizon. Reported usage of robo-advisors has risen
over 30% in the past year alone. Although adoption remains low at 5.3%, awareness, interest and intent have all
reached the high teens and beyond—nearly double last year’s percentages.

25%
Extremely/Very
23.1% Familiar
Extremely/Very
20% 20.3% Interested in
Learning More
Extremely/Very
Likely to Use
15% in the Next
12 Months
11.9% 12.4% Ever Used
11.5%
11.1%
10%

6.9%
5.3%
5% 5.4%
3.9%
3.8%

0%
Oct ‘15 Jan ‘17 Jan ‘18

Source: IAI Q1 2018 Barometer

5
The Affluencers most likely to be currently using
robo-advisors are Financial Ultra Affluencers (Index:
245), Investing Affluencers (Index: 238) and Banking
Affluencers (Index: 283).

Affluents who’ve engaged robo-advisors cite a wide

variety of reasons. Value and ease of use are among
the most commonly mentioned benefits. However, the
data-driven nature of the service—and the perception
that recommendations will be unbiased—also appeal
strongly to users. Many say robo-advisors help gener-
ate new investment ideas and uncover opportunities
that they might have overlooked otherwise.

Robo-Advisor Users: Tech-Savvy Risk Takers

Current robo-advisor users are engaged in the financial category—but it’s their comfort with and enthusiasm for
new technology that sets them apart. Robo-advisor users tend to be technology influencers and early adopters.
Their engagement with the tech category exceeds their engagement with the financial world.

ROBO-ADVISOR EVER USED

TECH-SAVVY EXPERIMENTERS

PSYCHOGRAPHICS DEMOGRAPHICS

Live Paycheck Gen-X 53%

to Paycheck
181

Boomer 18%

One of the First to 190 Millennial 28% Senior 1%

Try New Tech

Keep Up with Developments 197

in the Auto World

Female: 42% Male: 58%

Seek Out Truly Exclusive
219
Products/Services

Employed
Full Time

125
Life of the Party 252
Median HHI: $156K
100
Retired
75
Index

Median Age: 42 Employed

50 Part Time
Consider Self an Entrepreneur 291 25
Owner/Partner: Index 159
0

Median Net Worth: $856K

Source: Ipsos Affluent Survey Fall 2017; Psychographics: Two Two Box Agreement; All Indexes Against Total Affluent

6
Robo-advisor users are younger than the average affluent and are overwhelmingly Gen-X (Index: 147). They aren’t
especially high earners (HHI Index: 88), but they’ve built a net worth that’s on par with that of the average affluent.

Users aren’t newcomers to the financial services category. They describe themselves as “financial risk takers”
(Index: 210) who are open to working with companies that are “new and innovative” (Index: 150). Nevertheless,
they often turn to others for financial advice (Index: 175). Their core competency is technology—a category in
which they’re both early adopters and influencers. They understand the tech behind robo-advisors—as well as the
benefits of using one.

Robo-Advisor Intenders: Digital Natives

Affluents who intend to use a robo-advisor in the next twelve months are less likely to see themselves as risk takers
(Index: 129)—which may explain why they’ve resisted taking the plunge thus far. They’re younger affluents who are
comfortable in both the tech and financial worlds. Like current users, intenders are tech and financial influenc-
ers—but to a lesser degree.

46% of intenders are Millennial (Index: 153). They haven’t amassed the net worth of current users, but they have a
higher household income. Because of their relative inexperience, they’re likely to seek advice and recommenda-
tions from those who’ve tried the latest FinTech products. Once they gain the confidence they need, there will be
little holding intenders back. This is an audience that’s keen to work with companies that are “new and innovative”
(Index: 159).

ROBO-ADVISOR INTENDER
DIGITAL NATIVES

PSYCHOGRAPHICS DEMOGRAPHICS

Gen-X 38%
Consider Self an
160
Entrepreneur

Boomer 15%

Life of the Party 163 Millennial 46% Senior 1%

Key Decision Maker for

Company’s Banking Needs 181

Female: 51% Male: 49%

Auto Influencer 186

Employed
125
Full Time
Employed
Prefer Designer/ 187 Part Time
Median HHI: $172K Luxury Brands 100

75
Index

Median Age: 37 50
Retired
Live Paycheck 25
to Paycheck
223
Owner/Partner: Index 167 0

Median Net Worth: $710K

Source: Ipsos Affluent Survey Fall 2017; Psychographics: Two Two Box Agreement; All Indexes Against Total Affluent

7
Are Robo-Advisors Victims of Their Name?
One factor hindering consumer adoption may be resistance to the term “robo-advisor” itself. When asked whether
they would be more likely to follow a recommendation from a human financial advisor or one from a robo-advisor,
only 14% of our affluent sample chose the robo-advisor. However, when asked to choose what they trust more,
human judgment or data algorithms, 29% of our respondents chose data, suggesting that the benefits of robo-ad-
visors may be much more broadly appealing than current usage suggests.

14%
Which Kind of 29%
Financial Advice
Would You Be Which Do You
Most Likely to Trust More?
Follow?
86% 71%

A Recommendation from a Human Financial Advisor Human Judgment

A Recommendation from a Robo-broker or Robo-advisor Data Algorithms

Source: IAI Q1 2018 Barometer

DIGITAL-ONLY BANKS
As we saw with robo-advisors, familiarity, use, intent and interest in digital-only banks are on the rise. We’ve seen
significant increases in all measures in the past twelve months.

40 Extremely/Very
35.8% Familiar
35
Extremely/Very Likely
30 to Use in the Next
27.3% 12 Months
25 25.2%
22.8%
22.6% Ever Used
20 17.1%
16.6% Extremely/Very
15 15.6% Interested in
Learning More
10
Jan’17 Jan’18

Source: IAI Q1 2018 Barometer

While usage of digital-only banks remains low, banking online is an increasingly common behavior, with half of all
affluents claiming they rarely set foot in a brick and mortar bank. Moving from a traditional bank to a digital-only
bank would require little behavioral change on the part of many consumers. However, they’ll require a compelling
reason to make the move. Retirement Planning Affluencers index highest for current usage, suggesting that the
competitive interest rates available at many digital banks may be a motivator.

8
 Total Ever Used Intenders Currently Resistors Not
A Digital Bank Not Using Digital Using Digital
Bank Bank
Top Three Box Likely Bottom Two Box Unlikely
Next 12 Months Next 12 Months

30% 26% 30% 32%

50% 56% 55% 45%

18% 15%
20% 23%

I Do Almost All or Most of My Banking in Person I Do a Mix of Banking in Person and Digitally I Do Almost All or Most of My Banking Digitally

Source: IAI Q1 2018 Barometer

Digital-Only Bank Users: “Whole Foods” Sophisticates

Current digital-only bank users are Financial Affluencers who are less familiar with new technologies than those
who say they intend to use in the next 12 months. These environmentally conscious, organic food-loving consum-
ers don’t resemble other financial groups we’ve profiled. Our data indicates that they may have come to the cate-
gory with a specific need or desire to take advantage of better rates. They Index 221 for planning to sell their main
residence in the next twelve months, which tells us they may be using a digital-only bank to safely park money for
future use.

DIGITAL-ONLY BANK CURRENT USER

“WHOLE FOODS” SOPHISTICATES

PSYCHOGRAPHICS DEMOGRAPHICS

Tech Gen-X 46%

Influencer
124

Boomer 20%

Will Pay More for

Environmentally 124 Millennial 29% Senior 5%
Friendly Products

Minimizing Impact on
Environment 128
Important

Female: 48% Male: 52%

Will Consider Hybrid 136
for Next Auto Purchase

Employed
Full Time Retired
125

Life of the Party 142

100
Median HHI: $177K Employed
75
Index

Part Time
50
Median Age: 45 Live Paycheck 25
to Paycheck 151
0
Owner/Partner: Index 95

Median Net Worth: $920K

Source: Ipsos Affluent Survey Fall 2017; Psychographics: Two Two Box Agreement; All Indexes Against Total Affluent

9
Digital-only bank users are younger than the average affluent, indexing 118 against Gen X. They are similar to
overall affluents in median household income and net worth.

Current digital-only bank users are not outstanding “financial risk takers” (Index: 113), but they’re not risk-averse
either. They look for great rates and value (Index: 116) over great service and benefits (Index: 81) and trust data
algorithms (Index: 138) and robo-advisors (Index: 183) more than other affluents.

Digital-Only Bank Intenders: Youngish Tech-Friendly Influencers

The next wave of digital-only bank users will be technology “affluencers” who are the first to adopt new tech prod-
ucts. They are already doing most of their banking digitally, and there will be no behavioral hurdles to overcome.

DIGITAL-ONLY BANK INTENDER

YOUNGISH TECH-FRIENDLY INFLUENCERS

PSYCHOGRAPHICS DEMOGRAPHICS

Seek Out Exclusive Gen-X 40%

161
Products/Services

Boomer 24%

Keep Up With Fashion

167 Millennial 35% Senior 1%
and Trends

Auto Influencer 170

Prefer Designer/ Female: 48% Male: 52%

Luxury Brands
171

Employed
Shops at Stores with Employed Part Time
High Personalized 177 125 Full Time
Median HHI: $172K
Attention
100

75
Index

Median Age: 40
Retired
50
Consider Self an
Entrepreneur
199
Owner/Partner: Index 179 25

Median Net Worth: $728K

Source: Ipsos Affluent Survey Fall 2017; Psychographics: Two Two Box Agreement; All Indexes Against Total Affluent

Intenders are younger than users, with a median age of 40. These intenders are self-described “financial risk
takers” (Index: 147) who want both great rates and great service. They trust data algorithms (Index: 134) and
robo-advisors (Index: 130) more than others but less than current users. They have faith in data and aren’t put off
by the new and innovative. In fact, they are significantly more likely to say that they’re open to working with finan-
cial companies they’ve never worked with before—a potential boon for up-and-coming digital-only banks without
the brand recognition of traditional banks, as well as a potential challenge for existing companies.

10
 Total Ever Used Intenders Currently Resistors Not
A Digital Bank Not Using Digital Using Digital
Bank Bank
Top Three Box Likely Bottom Two Box Unlikely
Next 12 Months Next 12 Months

43% 18%
28%
35%

72% 65% 57% 82%

I Prefer to Work with Financial Companies That I’ve Worked with in the Past I Am Very Open to Working with Financial Companies That I Have Not Worked with Before

Digital-Only Bank Rejectors: Change-Averse Investors

The consumers who aren’t interested in using a digital-only bank are “conservative investors” (Index: 110) who
value great service and benefits (Index: 109) and human judgment (Index: 113).

They would be very unlikely to seek the recommendations of a robo-broker (Index: 51). However, their median net
worth makes this audience an appealing one. These are consumers who prefer working with other humans—and
we suspect there always will be people like them.

DIGITAL-ONLY BANK NOT INTERESTED

CHANGE-AVERSE INVESTORS

PSYCHOGRAPHICS DEMOGRAPHICS

Gen-X 36%

Boomer 30%

Millennial 28% Senior 6%

Under-Index for
Almost All Psycho-
graphic Measures
Female: 48% Male: 52%

Retired
Employed
Employed Part Time
Median HHI: $182K 125 Full Time

100

Median Age: 48 75
Index

50
Owner/Partner: Index 67 25

0
Median Net Worth: $835K

Source: Ipsos Affluent Survey Fall 2017; Psychographics: Two Two Box Agreement; All Indexes Against Total Affluent

11
Offering a Compelling Reason to Switch
“24/7 accessibility” is currently cited as the number one reason for using a digital bank. “Fast, easy and conve-
nient” ranks third. However, accessibility and convenience won’t differentiate the digital-only banks or individual
bank brands. Intenders also cite fees and rates as potential reasons for considering a digital-only bank. Yet famil-
iarity with these benefits is not as high as it could be. Digital banks need to communicate differentiating and com-
pelling benefits, and those that do will find intenders willing and able to switch.

24/7 Accessibility 63%

Lower Transaction Fees 54%

Fast, Easy and Convenient 54%

Higher Interest Rates 41%

Innovation Services and

Product Offerings 27%

Hate Going to Bank 23%

Enhanced Customer
Experience 17%

Source: IAI Q1 2018 Barometer; Base: Top Three Box Likely to Use a Digital-Only Bank in Next 12 Months

CONCLUSIONS
As technology continues to disrupt the Financial Services category, Financial Affluencers should be a key commu-
nications target for new products and services. Not only are Financial Affluencers the first to try and buy—they’re
also the category’s educators, introducing their networks to the latest offerings.

Gen-X Affluencers with financial and tech expertise have led the way in the adoption of robo-advisors. They under-
stand the products—and are satisfied users who have come to trust algorithms and data more than human finan-
cial advice. They’ll be advising the next batch of converts, affluent Millennials who are keen to give innovative new
offerings a try.

Digital-only bank current users are affluent Gen-Xers. Though they’re influential in the financial services category,
they don’t resemble the other groups profiled and are likely driven by a desire to take advantage of higher interest
rates. Digital-only bank intenders are Millennials who are open to working with new companies and are already
banking online. They’ll need a compelling reason to switch from traditional banks, but once they’re given one,
there will be little to stop them.

12
ABOUT IPSOS AFFLUENT SURVEY USA
63%
Ipsos Affluent Intelligence began our affluent study over 40 years ago because we understood that affluents are
one of the most powerful and influential target audiences across all industries, driving revenue, adoption of new
technologies and experiences, and influencing purchases among their peers and network.
54%

Affluents control the lion’s share of U.S. household net worth and outspend non-affluents in virtually every catego-
ry. Consequently, marketers of everything from automobiles to watches, technology to 54% media, and entertainment
to travel rely on capturing both the share of wallet and share of mind of this critically important group.

For the purposes of this White Paper, the definition of affluents is adults
41% aged 18 and over, living in households with
at least $125,000 in annual household income. Data presented here are from the Fall 2017 Ipsos Affluent Survey
USA, which consists of online interviews of 22,449 interviews projecting to 58 million affluents in America, and a
January, 2018 re-contact of 803 respondents27%on the subject of FinTech.

ABOUT IPSOS CONNECT

Ipsos Affluent Intelligence is housed within Ipsos Connect, the market research specialization within Ipsos built to
reach, engage and more actively understand today’s digitally-driven consumer in the fast moving media, content
and technology space. We work with leading companies in technology, entertainment and all sectors of
media—TV, online, print, mobile, outdoor, radio—helping owners and advertisers to better understand different
audiences, the content they consume, the channels they use to consume it and the technology they employ to
discover, share and access this content.

For more information:

http://www.Ipsos-na.com/go/affluentsurvey
http://www.twitter.com/affluentintel
Greg.DePalma@ipsos.com
Donna.DenBraven@ipsos.com
Joe.Antoniotti@ipsos.com

© 2018 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may
not be disclosed or reproduced without the prior written consent of Ipsos.