NEW YORK — Nearly two-thirds of Americans say they are falling behind financially compared with where they expected to be at their age, while many see existing banking and card products as better suited to helping them get by than get ahead, according to a new survey.
The survey, conducted by Morning Consult on behalf of financial technology company Krak, found 63% of Americans believe they are financially behind expectations. That included 68% of people earning $50,000 or less and 49% earning at least $100,000.
Krak is a standalone global money and peer-to-peer (P2P) fintech application created by the crypto exchange Kraken (developed via parent company Payward).
Only 41% of adults described themselves as financially stable, while about 30% said they were unstable and 23% said they were stable in some areas but stressed in others.
Twice as many respondents said most financial products help people get by rather than get ahead, 42% compared with 22%.
Generally Satisfied
The findings showed consumers generally remain satisfied with their primary financial institutions despite frustrations with some services. Eighty-seven percent said they were satisfied with their primary checking account provider, but 58% expressed frustration with traditional banks.
Among the complaints cited were high fees, 23%; limited debit-card rewards, 22%; slow transfers, 16%; and unexpected account charges, 16%.
Only 46% said their bank helps their money grow meaningfully over time, while 33% said it does not. Twenty-six percent said they had felt taken advantage of by a bank because of fees, charges or unclear policies.
Access to products that help consumers both manage daily finances and build long-term wealth also varied significantly by income. Overall, 54% said they had access to such products, ranging from 43% among those earning less than $50,000 to 78% among those earning at least $100,000.
Debit Offers Control, Credit Offers Rewards
The survey found consumers see a trade-off between debit and credit cards.
Debit cards were associated with ease of use, safety and spending control, but 24% of respondents said debit cards were designed for getting by rather than getting ahead. Twenty-two percent said debit cards do not help build wealth, while 21% said they provide no meaningful rewards.
Credit cards were viewed differently. Forty-seven percent of Americans said credit cards are the only way to receive meaningful rewards, increasing to 56% among credit card holders.
Those rewards, however, come with financial concerns. Forty-two percent of credit card holders said they worry about paying their balance at the end of the month.
Additional Findings
- 64% also expressed frustration with their credit card rewards programs. Complaints included high annual fees, 27%; low cash-back rates, 26%; expiring rewards, 23%; difficult redemption processes, 22%; and confusing points systems, 19%.
- 30% of Americans surveyed said they do not have a credit card. Among them, 40% cited a preference for cash or debit, 23% said their credit history prevented them from qualifying and 22% said they deliberately avoid debt
Majority Open a Different Type of Card
The survey found 60% of Americans would be likely to switch to a spending card offering meaningful rewards without requiring them to borrow money. That included 68% of credit card holders, 64% of debit card holders and 43% of people without a credit card.
Consumers identified no annual fee as the most attractive feature of a potential alternative card, cited by 45%.
Other preferences included:
- Cash rather than points, 38%
- Earning meaningful interest or yield on balances, 29%
- Higher or unlimited cash back, 28%
- Rewards without borrowing, 26%.
When asked how they would prefer to receive rewards, 57% selected cash deposited directly into an account, compared with 12% for gift cards, 6% for travel points, 5% for store discounts and 4% for cryptocurrency.
Helped in Development of Card
Krak said the findings informed development of its Krak Card, which offers cash back paid as money rather than points without requiring users to borrow to earn rewards.
The survey also found 53% of adults would value the ability to hold money across multiple types of assets, including currencies, gold and other investments. That increased to 69% among higher-income respondents.
Krak did not provide the survey’s sample size, field dates or margin of error in the information released with the findings.
