A new survey from the American Bankers Association found that consumers want fintech companies to follow the same rules as banks.
The survey, conducted by Morning Consult, asked more than 4,456 adults about their views on businesses that provide bank-like services, but aren’t actually banks. More than four out of five (84 percent) said businesses providing bank-like services like checking and savings accounts or loans should be held to the same standards for consumer protections that banks are, and that 71 percent said they want the businesses that handle their finances be held to the same legal and regulatory requirements as banks.
“Consumers are clear: Any fintech or crypto company offering bank like products should be held to the same rigorous standards that apply to banks,” ABA President and CEO Rob Nichols said. “At the same time, Americans urge caution as Congress considers the first-ever rules for digital assets like stablecoin. A strong majority say lawmakers and the administration should avoid steps that could weaken community banks and undermine the financial system, and policymakers should bar the offering of yield-like rewards on stablecoin that threaten to draw away bank deposits that drive local lending. We share that view.”
More than 60 percent of respondents agreed that the U.S. should establish rules for digital assets like cryptocurrencies and stablecoins, and 42 percent agreed that Congress should bar stablecoin issuers and their affiliates from offering interest rates and rewards on the digital currency if there is any risk it could reduce the amount of funds available to banks to lend in the community.
The survey also found that stablecoin is not widely adopted among consumers with 90 percent saying they do not currently own stablecoin, and 80 percent saying they never have owned stablecoin. Only 17 percent said they were likely to buy, hold or use stablecoin in the next 12 months.
Consumer said they were wary of government price controls on credit cards and that a one-size fits all credit card interest rate cap, like the ones introduced in Congress earlier this year, would ignore the fact that different people have different financial situations. More than two thirds of the respondents (65 percent) said they would oppose a 10 percent interest rate cap if it resulted in higher annual fees.
“Consumers value the credit cards they use every day, and they recognize the strong competition and robust fraud protections that come with them,” Nichols said. “Given that reality, it’s no surprise that they are wary of proposals that would force one-size-fits-all price controls on credit. Americans understand that these kinds of proposals can lead to reduced credit access, fewer options and higher fees that ultimately hurt the very people they’re meant to help.”