77 percent of businesses in the United Kingdom are aware of fintech products and services, and two-thirds or 65 percent have adopted at least one fintech application, with a fifth or 19 percent taking on four. These adopters reported saving over £5,500 per year as an effect of using the fintech products and services.
Interestingly, a tenth or 11 percent reported making use of bitcoins or other cryptocurrencies at some point in 2016 in processing payments. While the clear majority or 89% have not made use of cryptocurrencies, a fifth or 21 percent of these businesses are expecting these currencies to feature in their payment transactions over the next 12 months.
23 percent of businesses reported making use of fintech products and services for banking transactions while 16 percent reported making use of fintech products and services for foreign exchange services. Meanwhile, one in four or 24 percent reported using cloud-based software for their accountancy functions, and a third or 32 percent made use of online lenders for business loans or invoice finance. Only 2 percent of businesses are using insurance technology (insurtech) services.
A partner at accountancy firm SSH LLP, Bobby Lane, said: “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”.
56 percent of business leaders are attracted to fintech since it saves time and money while a third or 34% were impressed by the user experience. Interestingly, a quarter or 23 percent said that fintechs were more transparent on fees and provided better customer service.
Managing Director at Allied Gold Ltd, a wedding rings company, Jerry Anderson, said: “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”.
CEO and co-founder of MarketInvoice, Anil Stocker, stated: “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 is not only business processes that are benefiting from fintech adoption. Companies are making use of fintech to engage staff. 62 percent of businesses use fintech adoptions for staff to report expenses (i.e. Expensify) and for automation of payslips. A further 23 percent are making use of online pre-paid cards (i.e. Revolut) in allocating budgets to teams.