New and emerging digital financial technology (fintech) tools are increasingly changing people’s daily financial lives, and Latino consumers are among the most active users of these tools in the US. Already, more than 9 in 10 Latino consumers report using some type of fintech product or service.
This report explores how these tools affect Latino consumers’ financial stability and wealth-building potential. We present the findings of a nationally representative survey and data from qualitative follow-up interviews on how and why Latino consumers are engaging with fintech products and what those experiences reveal about their financial goals and priorities.
Why This Matters
Despite accounting for $4.4 trillion in economic activity in 2024, Latino US households hold substantially less wealth than their white counterparts: about 19 cents for every dollar held by white households. For Latinos, who have historically faced barriers to accessing traditional financial institutions, fintech products could offer alternative pathways to wealth-building.
What We Found
We found that Latino consumers are actively experimenting with emerging fintech tools to manage their expenses day-to-day but not necessarily to build long-term wealth.
- Latino consumers are approaching fintech with a “stability-first” mindset, prioritizing emergency savings (46 percent), debt reduction (40 percent), and homeownership (26 percent) over long-term financial goals.
- Latino respondents were more likely to use buy now, pay later options than non-Latino respondents (22 percent vs. 14 percent), but were less likely to hold traditional wealth-building accounts, such as retirement accounts.
- Use of fintech tools differed by income level: low- and middle-income respondents were more likely to use fintech to manage liquidity and short-term stability while higher-income respondents were more likely to use it for portfolio management and long-term wealth building.
As policymakers and industry leaders evaluate fintech products, they should consider adoption rates and how consumers are using the products to meet their financial goals. If fintech primarily helps households manage short-term instability without creating pathways to long-term wealth, it may reinforce existing wealth gaps rather than narrow them.
