Around two-thirds of businesses in the UK have opened their arms to financial technology (Fintech). According to a survey handled by finance firm MarketInvoice, the implementation of Fintech across many sectors is saving UK businesses approximately £4.6 billion.
Fintech products adopted
The survey looked at data from 3,482 businesses in the UK and found that 65% have implemented at least one Fintech product. Around 19% use four or more Fintech services, and the use of these products are helping firms save an average of £5,500 per year.
With 1.3 million UK businesses in existence, MarketInvoice estimates that the same percentage are also using Fintech, reaching an annual saving of £4.6 billion.
While this figure is an estimate, it’s certainly clear that Fintech solutions are completely disrupting the way we do business across the UK, and around the world. Start-ups are coming up with solutions to everything from recording data to compliance reporting.
Entrepreneurs are necessarily ahead of the technology game, and are always looking for faster, better and more cost-effective solutions to get their business ahead. Fintech products are becoming the obvious sector for entrepreneurs and small business owners to adopt.
Fintech products are now routinely used across many businesses for services including banking and foreign exchange transactions. Around 24% of the businesses surveyed said they’re using cloud-based financial and accountancy software.
About 30% of the businesses are using online lenders for business loans and invoice finance, while only 2% report using insurance technology services. This is likely to change as other sectors, such as insurance, become more entrenched in the Fintech work model and begin to produce more and better solutions and services.
Why are firms using Fintech?
There are many reasons for the adoption of Fintech, with more than half simply finding it saves money and time. Around 34% reported that they liked the user experience and it was easier than using high street services.
Traditional banking and financial services have generally been notoriously time consuming to apply for, often confusing in their demands and slow to access. Fintech solutions are about cutting out the middlemen and allowing businesses more direct control over their financial services.
It’s easy to see why this is becoming ever more popular, with major financial firms now being forced into significant changes in the way that they do business in order to keep up.
The rise of cryptocurrency
Some of the businesses reported use of digital currencies, including Bitcoin and Etherium. Around 11% of the firms surveyed said that they had used a cryptocurrency to process payments. More than 21% said that they expect to be utilising cryptocurrencies over the next year.
There’s no doubt that the future is Fintech, and with so many products and services springing up to make transactions simpler, it’s a perfect partner for any start-up or entrepreneur.
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