Aite Group and Visa Inc’s

Banking and Brokerage

Consumer Study
Survey of U.S. Interfirm Account to
Account Transfers
December 2020
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2 ©2021 Visa. All rights reserved.

 Background and Methodology
Background Methodology
Aite Group conducted a consumer study in The study surveyed 1,957 U.S. consumers
Q2-2020 to determine the market between the ages of 18 and 65 who made
opportunity and uncover consumer transfers between accounts at different financial
expectations related to real-time money institutions in the 12-month period from April
movement between their own financial 2019 to March 2020.
accounts.1

Objectives
• Market sizing of payment inflows and
outflows related to bank and brokerage An A2A (account to account)
accounts transfer is the movement of
• Explore use cases and understand funds between two accounts
consumer pain points around A2A held in different institutions by
money movement
the same individual.
• Determine consumer expectations
around real-time money movement
between financial accounts

3 [1] Financial accounts = Banking and Brokerage accounts held at different institutions ©2021 Visa. All rights reserved.
Executive summary

Surveyed consumers exhibit strong overall A2A transfers between financial

demand for real-time payments for A2A transfers accounts is a ~$3T PV opportunity1

OF SURVEYED CONSUMERS: POTENTIAL BENEFITS FOR FIs & BROKERAGES:

Real-time preference Real-time new account funding Improve customer acquisition by

88% 87%
preferred to make A2A considered real-time reducing abandonments
transfers in real time1 funding at new account
opening to be important1
Increase consumer deposits and
Debit card preference Improved usage and UX create consumer loyalty

70% 68%
preferred their debit card said real-time transfers
over using their bank would increase account
account and routing usage and improve Differentiate from the competition
numbers for payments1 experience1

Flexibility Improve loyalty Attract younger consumers for

robust future growth

90% 74%
wanted the flexibility for real- may switch accounts to
time transfers in and out of an FI that offers real-time
their financial accounts1 payments in the future1

4 [1] Aite Group and Visa Inc. survey of 1,957 U.S. consumers Q2-2020 ©2021 Visa. All rights reserved.
Enabling investment opportunities

Consumers want fast, convenient transfers that The pain point

2.4
allow them to make investments quickly and average missed trades per year due
to delayed funds transfers from their
on the go bank to their brokerage account1

OF SURVEYED CONSUMERS: WHAT SURVEYED CONSUMERS SAID:

Active investors Mobile usage The market was down quite a bit due to
Coronavirus and I wanted to buy. By the
60% made trade decisions on
their own for their regular,
taxable investments1
74% made A2A transfers on their
mobile phone, either
through an app or website1
time my funds were available it had come
back a lot.1

I wanted to buy Tesla at 500 but it was

545 at the time it transferred.1
OF SURVEYED YOUNGER CONSUMERS:

Unfortunately, I did not have enough

Time-sensitive investments Higher-risk securities can funds in the BankMobile app and by the
be very time sensitive,

51% invested in higher-risk making real-time

time the transfer had come in the stock
securities like cryptocurrencies transfer capabilities had fallen.1
and futures1 more important

5 [1] Aite Group and Visa Inc. survey of 1,957 U.S. consumers Q2-2020 ©2021 Visa. All rights reserved.
Younger consumers present a massive growth opportunity

Gen Z and Millennial surveyed consumers had the strongest interest in and familiarity with
real-time A2A transfers
OF SURVEYED CONSUMERS: OF SURVEYED YOUNGER CONSUMERS:

A2A transfers by generations1

$135.2B
U.S. consumers aged 90% 76% 67%
Ge n Zers
$1.4T PV 18-40 hold just 5% of
(A ge 18 - 24) 59.3M investment assets2
but represent ~50% preferred to make A2A said real-time A2A were familiar with
Younger Millennials $298.6B of A2A transfers transfers in real time1 transfers would improve using debit cards for
(A ge 25 - 30)
619.3M Txn their experience and real-time A2A
185.3M
increase account usage1 transfers1

Older Millennials $961.9B

(A ge 31 - 39) 374.7M

Ge n Xers $1012.1B Upcoming asset transfer: This group is expected to inherit massive wealth
(A ge 40 - 55) 379.5M
from baby boomers within the next 10 years; this will be the biggest wealth
transfer in history.

Young baby boomers

(A ge 56- 65) 185.7M
$523.9B
Takeaway: Offering faster payments is not optional for
any organization that wants to succeed long term.
Pa yment Volume Transactions

6 [1] Aite Group and Visa Inc. survey of 1,957 U.S. consumers Q2-2020 [2] Federal Reserve 2016 Survey of Consumer Finance, Investment Company Institute ©2021 Visa. All rights reserved.
Factbook, College Savings Plan Network, National Association of Plan Advisors, U.S. Census, and Aite Group Estimates
Using Visa Direct for A2A transfers

Visa Direct can help enable money movement into and out of consumers’ financial accounts

AFT OCT

New account opening Add money Transfer funds Lending Other payouts
(One-time/Recurring)
• Instant Funding for new • Transfer funds from your • Loan disbursements: Transfer • Required Minimal
brokerage or FI (DDA, • Instantly topping up brokerage brokerage or FI (DDA, available credit line to an Distribution payouts
savings, money market, etc.) account for opportunistic savings, money market, etc.) external consumer or SMB • Insurance and annuities
account1 buying of securities1 to an external FI account account in real time* payouts – life insurance
• Instant deposit to FI account on Visa Debit card in real time* • Secured credit: Transfer policy etc.
a one-time or recurring basis1 secured credit balance to • Cross border payouts
• Funding of 529 savings account consumer's external debit
card account

7 1. Timing of fund may vary by Financial Institution. Financial Institution may elect to make funds available instantly. ©2021 Visa. All rights reserved.
*Actual fund availability depends on receiving financial institution and region.
Use cases are for illustrative purposes only. Program providers are responsible for their programs and compliance with any applicable laws and regulations.
Consumer preferences

Surveyed consumers preferred real-time A2A transfers

I would prefe r a real-time payme nt method
A significant majority of surveyed consumers OF SURVEYED CONSUMERS:
I would prefe r a nother payment method
preferred a real-time payment method for transfers
between their accounts (banking and brokerage), and Ge n Zers (Age 18 - 24) 89% 11%
this behavior was consistent across all demographics.1 preferred to

88%
Younger millennials (Age 25 - 30)
transfer funds 87% 13%

Important at new account opening: 87% of surveyed between financial Older millennials (Age 31-- 39) 91% 9%
consumers said the ability to fund a new account in real accounts Ge n Xers (Age 40 - 55) 89% 11%
time was an important functionality, with younger in real time1
consumers valuing it 12% more than older consumers.1 Younger baby boomers (Age 56 - 65) 83% 17%

Real-time capabilities were important for both

funds-in and funds-out transfers: For over 90% of
surveyed consumers, moving money into their financial
accounts in real time was as important as moving money Importance of real-time Checking Acct. Savings Acct. Brokerage Acct.

out of those accounts in real time.1 funding for a new account,

based on account type1 81% 73% 77%

Across a variety of account types, transfer Funds in Funds out

types, and demographics, surveyed
of surveyed consumers said of surveyed consumers said
consumers valued the ability to move
funds in real time. 92% real-time funds-in
transfers were important1
93% real-time funds-out
transfers were important1

8 [1] Aite Group and Visa Inc. survey of 1,957 U.S. consumers Q2-2020 ©2021 Visa. All rights reserved.
Customer experience

Improving customer experience with real-time transfers

Very likely,
Better experience and increased usage: 68% of How likely would you be to move Not likely,
16%
surveyed consumers said that the ability to transfer your account to a bank or 27%
money from their investment accounts in real time would
financial institution/company that
enhance their overall experience and may increase usage
of their accounts, and that number rose to 76% of offers real-time transfers from
younger consumers.1 (Account 1) to (Account 2)?1

Customer retention: 74% of surveyed consumers may

consider switching to an FI that offers real-time transfers.1
Might or might not,
57%
Familiarity: 66% of surveyed
consumers had heard of and knew how to use debit
card real-time payments, compared to only 47% for
Zelle and 37% for RTP., 1 OF SURVEYED CONSUMERS: OF SURVEYED YOUNGER
CONSUMERS:

reported frustration

Customers indicated that real-time A2A 38% with the existing speed
were willing to pay a

31%
of funds availability1
transfers would improve user experience, fee for real-time A2A
transfers1
usage, and retention. They were most familiar
with using debit cards for real-time payments were willing to pay a
but willingness to pay fees was low. 21% fee for real-time A2A
transfers1

9 [1] Aite Group and Visa Inc. survey of 1,957 U.S. consumers Q2-2020 ©2021 Visa. All rights reserved.
Thank you.

10 ©2021 Visa. All rights reserved.