Business finance company MarketInvoice surveyed UK businesses on their awareness and adoption of fintech (financial technology) products and services.
Seventy-seven per cent of UK businesses are aware of fintech products and services and two-thirds (65 per cent) have adopted at least one fintech application, with a fifth (19 per cent) taking on four. These adopters report saving (on average) over £5,500 a year as result of using the fintech products and services.
Interestingly, a tenth (11 per cent) report using bitcoins or other cryptocurrencies at some point in the past year in processing payments. Whilst the clear majority (89 per cent) have not used cryptocurrencies, a fifth (21 per cent) of these businesses expect these currencies to feature in their payment transactions over the next 12 months.
Businesses report using fintech products and services for banking transactions (23 per cent) and foreign exchange services (16 per cent). Meanwhile, one in four (24 per cent) report using cloud-based software for their accountancy functions and a third (32 per cent) used online lenders for business loans or invoice finance. Only two per cent of businesses are using insurtech (insurance technology) services.
Bobby Lane, partner at accountancy firm SSH LLP, comments, ‘Most of our clients are now using cloud-based solutions and automating many of their routine processes. This means that I have more time to focus on advising my clients on strategic matters. Also, it’s now far easier for us to use fintech services because the ability to integrate with these new systems has opened up huge opportunities for improving processes.’
Business leaders are drawn to fintech because it saves time and money (56 per cent) whilst a third (34 per cent) were impressed by the user experience. Interestingly, a quarter (23 per cent) say fintech’s were more transparent on fees and provided a better customer service.
Jerry Anderson, managing director at wedding rings company Allied Gold Ltd, comments, ‘We’re a third-generation family business, I have adopted fintech across the business from our accounting to our banking services. The user experience and service is far superior to what is available on the high street.’
Anil Stocker, CEO and co-founder of MarketInvoice comments, ‘The expansion of tech-driven digital services has been remarkable over the past 5 years. We know that consumers have been adopting tech applications into all parts of their lives, but our research shows that now UK businesses are also becoming tech-savvy.
‘Fintech applications are revolutionising the way business is being done from how employees report their expenses to the way businesses report their financial performance. 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.’
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 (i.e. Expensify) and for payslips automation. A further 23% are using online pre-paid cards (i.e. Revolut) in allocating budgets to teams.