Research led by open banking platform Plaid has found the use and adoption of FinTech has reached mass scale in the UK, with up to 86% of consumers using it.
The research – titled The FinTech Effect – was conducted alongside the Harris Poll. It found that UK consumers on average using 2.8 FinTech products and services, with an average UK user managing 67% of their finances online. When quizzed, current users stated that they expect to increase the number of apps and services they use to 3.5 over the next six months.
Another key finding was that UK consumers are finding utility in open banking, with the technology making a positive impact on their financial standing. Up to 76% of Brits said they feel confident using technology to manage their finances, with consumers said it had benefitted them by saving time, money and reducing stress, at 59%, 42% and 36% respectively.
The research found that payment services were identified as particularly popular as a FinTech application for banking and to pay for goods and services.
Plaid head of international Keith Grose said, “This has been a ground-breaking year for fintech as Covid-19 pandemic led people to turn to digital solutions. This accelerated the inevitable and now fintech has reached mass adoption faster than almost any service besides the internet itself.
“Moving forward, open banking will be a core part of digital life— and it won’t be just about understanding your finances but putting them to better use via new, digital payment methods.”
Plaid policy lead Kat Cloud added, “In the UK, regulators have made great strides creating an environment that allows open banking to flourish. Underpinning this shift is the fact that open banking in the UK is spearheaded by the revised payment services directive (PSD2) and the CMA’s Open Banking Order. But, plenty more remains to be done to unlock the true potential of the fintech sector – particularly when it comes to realising the potential of open finance. “
A recent survey by open banking platform Tink found that four in ten executives believe it will take their organisation between 5-10 years to fully implement open banking.
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