Fintech disruptors like Robinhood, Chime, and Cash App are rewriting traditional banking narratives by capturing what was once unthinkable: primacy status as consumers’ main financial institutions. These digital-first companies are winning through end-to-end experiences that eliminate friction points, strategic features that create sticky behavioral habits, and embedded financial services that reshape consumer expectations.
For years, fintechs were written off as niche players — purpose-built apps that consumers might use for payments, budgeting, or investing, but seldom as their primary financial institution (PFI). Even as the neobank movement gained momentum, the assumption was hard to shake: Without branches or legacy trust, digital-first institutions would only play a supporting role. But that narrative has been shifting.
An ambitious cohort of fintechs is not just acquiring customers and racking up transactions — they’re capturing primacy, the coveted status of being a consumer’s main financial hub.
This shift may mark an industry turning point. Fintechs have found ways to deliver seamless digital experiences that rival, and increasingly outperform, traditional institutions. Well-financed companies like Robinhood, Chime, and Cash App are broadening their offerings and bundling features once thought exclusive to banks: early pay access, wealth management, debit cards, doorstep cash delivery and more.
For incumbent institutions long-accustomed to fending off digital newcomers, erosion of the primacy advantage has game-changing implications. New data shows digital banks now account for nearly half of all new checking accounts, and younger generations are especially eager to switch. What’s more, new battlegrounds are emerging in the primacy war, like frictionless account opening, embedded subscription management, and automated deposit switching. It turns out that fintechs aren’t just gaining PFI share — they’re reshaping what consumers expect from their banks.
Here’s how their user-centered design, strategic positioning, and new value propositions are winning over customers.
Want more insights like this? Check out Pinwheel’s content portal: Primacy in the Digital Age
End-to-End: Where It All Begins
One reason fintechs are gaining ground in the race for primacy is that they’ve invested heavily in building end-to-end digital experiences that work smoothly without needing branch or phone support. Account opening is fast, interfaces are intuitive, and key features — like moving money or accessing your paycheck — happen in real time.
Robinhood’s move into banking includes a cash delivery feature for Gold members, aimed at addressing one of the last-mile needs that once drove users back to a branch. The company, one of the past decade’s biggest fintech success stories, has also added advisory services, with fees capped at just $250, a fraction of the typical 1% charged by traditional wealth managers.
Chime — founded as a fee-free, high-transparency alternative to traditional banks — has made inroads with its early direct deposit option, which gives users access to their wages up to two days early; the service, MyPay, has become a central reason users adopt and stick with the platform. And Cash App, a P-to-P payment app launched by Square parent Block Inc., has built a comprehensive interface where users can manage everything from spending to investing without toggling between tools.
The new Consumer Banking Sentiment report — a January 2025 survey of 500 employed and banked American consumers — from Pinwheel bears out the trend.
Consumers are prioritizing a frictionless end-to-end digital banking experience above all else and they want solutions to help them manage the complexity of their recurring payments. In a major sentiment change, proximity to a branch no longer tops the list of factors driving a consumer’s choice of bank: For high-income consumers and Millennials, quality of digital experience is No. 1. (Checking account features and interest rate offers are the top driver for Gen X and Boomers.)
One telling detail in the report: Switching bill payments is a major pain point. Some 68% say they’ve left a newly opened account inactive due to a poor onboarding experience. Among them, 39% cited the difficulty of transferring recurring payments, and 29% said there was no easy way to switch direct deposit.
| Company | Founded/Ownership | How It Started | How It’s Going |
|---|---|---|---|
| Acorns | 2012/Private | Micro-investing app that rounds up spare change for investments | Banking, retirement accounts, and automated money management tools |
| Cash App | 2013/Owned by Block, Inc. | Friend-to-friend payments tool for splitting expenses | Debit cards, pay-over-time, crypto trading, and full-featured accounts |
| Chime | 2013/Private | Fee-free credit card and early pay access. | Fee-free checking, savings, plus overdraft, ATM access, financial education, tax filing. |
| Current | 2015/Private | Debit card and app for teens to teach financial responsibility | Full neobank serving a broader demographic with faster direct deposit and crypto options |
| One Finance | 2019/Majority-owned by Walmart/td> | Fintech offering a simplified, all-in-one digital account | Combines checking, savings, credit, and budgeting in a single app; aims to replace traditional banks |
| Robinhood | 2013/Public | Commission-free trading app for retail investors | Expanding into banking, wealth management, and cash delivery; aiming to become users’ primary bank |
CompanyFounded/OwnershipHow It StartedHow It’s Going
In Sync with Behavioral Dynamics
Beyond usability, fintechs are embedding features that change how people interact with their money. In fact, many of the companies’ core value propositions are anchored in such behaviors — which make their platforms harder to leave.
Acorns, which rounds up spare change from everyday purchases and automatically invests it, was founded on exactly such a principle — turning small, repeated actions into a hard-to-break financial habit. Chime’s MyPay, meanwhile, encourages users to reroute their direct deposit, another positive financial habit and key marker of primacy.
Acorns offers simplified direct-deposit set-up, too — which it implemented with the help of Pinwheel. “We’re hoping people will take control of their financial wellness,” says Acorns CMO Kasia Leyden. “By making it easier for customers to set up direct deposit, we’re ensuring their money flows where it matters most, especially during pivotal life moments — like saving for a first home, a growing family, retirement or a rainy day.”
The booming popularity of subscription management services — also rooted in consumer habituation — falls into the same category. People are struggling to manage their recurring payments, and they want their bank to help track and cancel recurring charges. In Pinwheel’s research, an astounding 50% of consumers said they would switch to another bank if its app had a built-in subscription management service.
Net-net, these behavioral hooks create habits and create positive first impressions that deepen user engagement and increase the likelihood of the provider becoming a customer’s PFI.
“The fastest-growing fintechs understand that the quality of the digital onboarding experience influences the decisions customers make about how much they intend to use a new account,” says Pinwheel Chief Executive and Co-Founder Kurt Lin. “By making it easy to port over direct deposits and recurring bill payments, they’re increasing intent for primacy and unseating legacy banking relationships.”
These features aren’t necessarily complex, but they signal a shift from simply holding and moving money to actively shaping how users manage their financial lives. The result is stickier relationships — and fewer reasons for users to graduate up to a traditional institution.
Embedded But Definitely Not Sleeping
Nonfinancial companies have been eyeing the banking sector for years. From big-box retailers to auto manufacturers to tech platforms, many have experimented with offering financial services—often through monoline product offerings. What’s different now is that digital adoption, paired with changing consumer habits — not to mention regulators’ increased acceptance of embedded finance models — is giving these players a real shot at primacy.
Apple, for example, has offered payments and credit products before, but now it’s integrating high-yield savings and account management features directly within Apple Wallet — turning the iPhone into a de facto financial hub. Walmart, which has been testing different financial models and partnerships for decades, is today taking a more direct approach through One Finance, in which it now owns a majority stake. One Finance, another Pinwheel partner, combines checking, savings, and credit into a single app tied to Walmart’s customer ecosystem.
These efforts reflect a broader shift: primacy is no longer gated by a banking charter or a branch network. It’s available to any company that can deliver a seamless experience and build habitual use. For retailers and platforms with massive customer reach, the opportunity to become the go-to financial relationship is closer than ever.
Age Against the Machine
One of the strongest drivers of the momentum behind fintech primacy is younger-generation consumers. According to Pinwheel’s report, 42% of Gen Z and 36% of Millennials say they plan to switch banks in the next year — far higher than older age groups. These consumers are not only more comfortable with digital finance; they’re more willing to rebuild their financial lives around providers that meet their expectations.
As these cohorts age into their peak earning and borrowing years, their preferences are likely to shape the future of the banking market. Fintechs that win primacy today are building long-term relationships with the next generation of financially-active and wealth-owning account-holders.
Source: THE FINANCIAL BRAND
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