A new survey of more than 2,000 UK adults commissioned by Yobota has uncovered how integral technology has been for people managing their finances during the lockdown.
The research found that:
- 64% of UK adults have been reliant on technology to manage their finances since March, up from the 42% before the lockdown
- Checking accounts (88%), transferring money (80%), withdrawing funds out of an investment (35%) and searching for new financial products (27%) have been the most common uses of fintech
- 21% have secured new financial products without speaking to a human being
- 15% of people have been frustrated by their banks’ poor technology
- The figure rises to 28% among those aged between 18 and 34
The London-based technology company commissioned an independent survey among more than 2,000 UK adults. It found that 64% have become reliant on mobile and online banking to manage their finances since March, which is a sharp increase from before the lockdown, when just 42% of the nation were using fintech.
The most common uses of fintech have been checking one’s accounts (88%), transferring money (80%), closing or withdrawing funds out of an investment (35%) and shopping around for new financial products (27%). Millions of people have also used fintech to open new savings accounts (26%), apply for credit cards (18%), and extend overdrafts (17%).
Over a fifth (21%) of fintech users said they have successfully secured new financial products during the lockdown without having to speak to a single human being.
However, Yobota’s research also exposed that 15% of consumers have been frustrated by their banks’ poor technology, with this figure rising to 28% among those aged between 18 and 34.
One in three (31%) people say the lockdown has opened their eyes to how many different ways technology can be used to manage their finances, with 42% planning to continue using tech much more even as bank branches re-open.
Underlining the increasing importance of fintech, almost half (47%) of consumers say their tech offering is a “key consideration” when choosing a financial services provider.
Ammar Akhtar, CEO of Yobota, said: “In light of the financial distress caused by COVID-19, millions of Britons have needed fast access to loans, credit cards and overdrafts, not to mention advice and guidance. Crucially, they have had to rely on mobile and online banking for almost all of this.
“This research shows how some people have found managing their finances during the lockdown simple thanks to the advanced, easy-to-use fintech solutions deployed by their providers. However, others have clearly been frustrated and let down by their bank’s technology. Even as the lockdown passes, people will not be in any rush to queue up in bank branches or have lengthy telephone calls, meaning financial services companies must keep pace with the demand for fintech.”