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35 » VISIT US ONLINE @ DSNEWS.COM BIG BANKS AND FINTECH: AMERICANS WANT BOTH Financial technology (fintech) is steadily gaining traction in today's technology-driven market, and according to Blumberg Capital's Annual FinTech Survey, over two-thirds of Americans are looking for banks to provide new fintech solutions. e survey, released in October, examines attitudes of American consumers toward traditional banking institutions, fintech startups, and new financial technologies, including blockchain and cryptocurrency. e survey discovered that 57 percent of respondents have a positive view of fintech startups—while 57 percent also believe that the days of going into a physical financial institution for any reason are coming to an end. According to David Blumberg, Founder and Managing Partner of Blumberg Capital, previously in the financial industry, capital, reputational trust, and regulations were the only barriers to entry. "Technology is changing the game," Blumberg said. "Large financial institutions need to build or buy innovation to maintain and extend their leadership positions. As consumers demand the new technologies, we will see increased adoption or acquisition of fintech by banks to serve consumers." In addition, Blumberg believes the fintech revolution is expanding the market, thereby positioning some pure-play fintech startups to become large financial institutions of the future. However, the survey notes that with major breaches in security at large established financial institutions like Equifax, Americans are worried about new financial technologies and are skeptical as to whether institutions are trustworthy—76 percent of respondents worry about security with some of the new online banking and payment services. According to the survey, this increased from 72 percent in 2016. Blumberg continued to explain that while the average consumer may hesitate to change from traditional banking to emerging fintech products and services, the potential benefits might become too valuable to ignore. "ese results indicate that for fintech startups to scale and thrive, they need to provide a product or service that is substantially better, not just incrementally better than traditional banks. At the same time, if banks don't adapt and adopt new technologies, they risk losing the next generation of customers," Blumberg said. SUBURBS: WHERE AMERICANS ARE MIGRATING Politics and affordability are causing Americans to relocate, according to data released in October by Redfin. In the first half of 2017, 7.4 percent more people moved out of blue (Democratic) counties than to them, while red (Republican) counties experienced a 1 percent increase. Purple counties, which are classified as counties that share an equal balance of Democrats and Republicans, gained 2.3 percent more than they lost, and swing counties in swing states experienced 1.8 percent more Americans moving in than out. "As blue counties are becoming increasingly less affordable, we see a great number of residents moving to red counties where they can afford the lifestyle they want," said Redfin Chief Economist Nela Richardson. According to the data, the shift is caused by two primary reasons: economic and political. America's largest urban cities, which are predominantly in blue counties, are less affordable and housing in those counties is less available. e average blue county home would cost a buyer about $360,000, over 62 percent more than homes in red counties, which average $223,000. "Sure, blue-county incomes are usually higher, but their residents spend on average 32 percent of their household income on rent, nearly 5 percentage points higher than residents of red counties (purple counties fall in between at 30.9 percent), according to the Census," Redfin reported. Politics can also be a key reason in where Americans decide to move. A separate Redfin survey reported that 41 percent of recent homebuyers hesitated to buy in areas where the majority had political views different from their own. e report also found that less than one in 10 respondents were enthusiastic about moving to a different political climate, and the remaining half was neutral. "At Redfin, we see this as a sign of hope for a less-divided country, where people with differing views gain better understanding and tolerance of each other through sheer proximity."

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