London-based fintech company Yobota commissioned an independent body from the Market Research Society to survey 2,000 UK consumers on their usage of financial technology services during the lockdown period.
The research illustrated, first and foremost, that 64% of those surveyed had relied upon fintech to manage their finances between March and June, which was up from 42% pre-lockdown – representing an increase of over 50%.
One in three consumers also said that the lockdown had exposed them to the range of technological solutions on offer for financial management tasks, with 42% planning to use fintech products ‘much more’ than they previously had, even as bank branches reopen.
How are we using fintech?
Despite the increasing range and sophistication of online financial tools, most UK adults still prefer to use fintech for menial online banking tasks, with 88% using their apps to check their accounts and 80% transferring money.
This compared to 35% who had used virtual offerings to withdraw funds out of an investment and 27% who had used online tools to shop around for new financial products. Also worth noting, is the 21% who secured new financial products – such as credit and debit cards – without ever speaking to a human.
A fintech-enabled future?
With the UK, and specifically London, being home to many of the world’s new fintech entrants, the rising use of these products by British consumers seems like a natural occurrence.
Some 15% of people said they had been frustrated by their bank’s poor technology offerings, while this figure rises to 28% between the 18-34 age bracket. Underlining the importance of these tools going forwards, 47% of respondents said that tech offerings were now a ‘key consideration’ when choosing a financial service provider.
Not only will fintech become more prevalent as the quality and scale of services improves, but also as trust increases. Many consumers are still sceptical about carrying out sensitive transactions online, so the fast rise of fintech – still in its relative infancy – should tell us all we need to know about its potential to become the predominant form of banking in the future.
Aside from benefiting over time from a younger generation that are comfortable living more tech-integrated lives, companies know that tightening up security while increasing convenience, will be the key to making fintech a more integral part of modern life.
