The New Generation of Cards from FinTech

International Debit and Credit Cards (Image Credit — IB TimesUK)

Financial technology (FinTech) companies expanded access to banking services for over the last decade. This effort centered on access to banking for those who couldn’t qualify or afford a standard bank account (i.e. the underbanked and unbanked). Multiple neobanks and challenger banks quickly addressed this core need and are focusing on how to differentiate themselves from competitors.

In this new decade, a shift is taking place towards providing all accountholders an enhanced experience, premium rewards, and other benefits with their bank card — beyond an ability to make purchases. The current FinTech response with debit and credit cards has been influenced by the priorities of millennials and Gen Z, who now look to FinTech for something beyond a free account with a card.

Current Trends Impacting Card Spend

Credit vs. Debit Card Spend (Image Credit — CU Journal)

For millennials (born 1981–1996), this is their second experience of a recession — the first with the Financial Crisis of 2008–2009. Graduating with large student loans and racking up high credit card balances impacted credit worthiness and a negative attitude towards lending.