Plaid today released its annual Fintech Effect report, revealing that while consumers in the U.S. and U.K. continue to feel the weight of inflation and economic uncertainty, fintech has become a trusted lifeline—helping people save, build confidence, and make smarter financial decisions.

Financial strain, but rising resilience

The majority of consumers on both sides of the Atlantic are struggling with rising costs: 76% of Americans and 74% of Brits say their paychecks don’t stretch as far as they did a year ago, while 68% of Americans and 62% of Brits express concern about the job market.

Despite these pressures, financial confidence is climbing. 75% of U.S. consumers and 73% of U.K. consumers now feel confident about managing their finances, up sharply from recent years.

Fintech’s growing role in everyday life

Overall, consumers overwhelmingly credit fintech apps with helping them weather tough times. 61% of Americans and 59% of Brits say fintech tools like budgeting apps are helping them through economic challenges, while nearly 9 in 10 fintech users in both markets report feeling more in control of their financial futures.

Fintech is also becoming a trusted source of education. 72% of consumers in both the U.S. and U.K. want fintech companies to play a larger role in teaching people how to manage their money during periods of high inflation.

The tools of choice: Pay-by-bank, BNPL, and crypto

The report highlights shifting adoption of key financial services:

• Pay-by-bank: Seen as beneficial by 80% of Americans and 85% of Brits.

• Buy Now, Pay Later: Used by 58% of Americans and 55% of Brits in the past year, especially younger generations.

• Crypto: More popular in the U.S. (34% hold crypto) than in the U.K. (25%), though skepticism remains high in both countries.

Trust and connectivity drive adoption

Trust in fintech is on the rise, with 38% of Americans and 36% of Brits rating fintech companies as very trustworthy. Consumers rank data security, encryption, and transparency as the most important factors in choosing a financial app.

Connectivity is now a must-have: 77% of Americans and 72% of Brits say their bank must integrate with the apps and services they use, and two-thirds would consider switching banks if those needs aren’t met.

AI adoption accelerates

Artificial intelligence is quickly becoming part of personal finance. One-third of Americans and one-quarter of Brits have experimented with AI tools in the past year, with growing comfort in applying AI to budgeting, fraud prevention, and long-term financial planning.