UK Businesses Adopting FinTech Save £4.6 billion Every Year
New research has found that a large majority of U.K. companies are adopting fintech (financial technology) applications, helping them save billions each year.
The study was conducted by MarketInvoice who surveyed over 3,000 U.K. businesses between August and September 2017.
The results found that 77 percent of U.K. companies are aware of fintech products and services. However, 65 percent, or two-thirds, have adopted at least one fintech application. A fifth, or 19 percent, reported taking on four.
Those that have adopted the fintech applications reported saving, on average, £5,500 a year. Based on the results, the study found that 65 percent of the 1.3 million employing U.K. businesses are making this average saving, bringing the total saved through financial technology services and products to £4.6 billion a year.
Of those using the products, 23 percent reported implementing the applications for banking transactions. Whereas, 16 percent stated they used the products for foreign exchange services.
Anil Stocker, CEO and co-founder of MarketInvoice, said:
The expansion of tech-driven digital services has been remarkable over the past five 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.
Interestingly, 11 percent of companies indicated that they had used bitcoin or other cryptocurrencies over the past 12 months in processing payments. A significant majority, 89 percent, said they hadn’t used digital currencies. Favorably, though, 21 percent expect cryptocurrencies to play a role in their payment transactions over the next year.
For many businesses there are a number of reasons why they are using fintech products.
MarketInvoice found that 56 percent are drawn to it because it saves time and money; however, a third are impressed by the user experience. Additionally, 23 percent said that fintech’s are more transparent on fees and provided a better customer service.
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.