The adoption of tech-driven digital services over the past five years is nothing short of remarkable. Not only have consumers adopted tech applications into all parts of their lives but UK businesses are also increasingly becoming more tech-savvy.
Nowhere is this more apparent than in fintech. From how employees report their expenses to the way businesses present their financial performance, these applications are revolutionising the way business is being done. To find out exactly how much, MarketInvoice recently surveyed UK businesses on their awareness, adoption and use of fintech products and services.
We found out that 77% of UK businesses are aware of fintech products and services and two-thirds have adopted at least one fintech application, with a fifth taking on four. These adopters reported saving on average over £5,500 a year as result of using the fintech products and services. Entrepreneurs always seek out the best means to drive their businesses and clearly fintech products and services are becoming a stable part of this approach.
Of the companies surveyed, 23% used fintech products and services for banking transactions, while 16% used the technology for foreign exchange services. Meanwhile, one in four reported using cloud-based software for their accountancy functions and a third used online lenders for business loans or invoice finance. Interestingly, only 2% use insurance technology, or insurtech, services.
Over half of the business leaders were drawn to fintech because it saves time and money whilst a third were impressed by the user experience. Interestingly, almost a quarter said fintech was more transparent on fees and provided a better customer service.
It’s not only business processes that are benefitting from fintech adoption. Companies are using fintech to engage staff. 62% of businesses use fintech adoptions for staff to report expenses and for payslips automation. A further 23% are using online pre-paid cards in allocating budgets to teams.
It’s great to see that awareness is high and take-up of fintech services is enabling business to benefit from a time, resource and financial perspective. I expect this trend to continue. From seeing the success of mobile app-only business accounts to how fintech’s will work with high street banks in supporting UK businesses, 2018 looks set to be a big year for the sector.