Fintech the new normal, survey finds
A new worldwide poll has revealed more than half of banking and financial services customers are using fintech products and services, which highlights the rate of the digitalisation of our everyday lives.
The poll found that 55% of respondents of the survey, carried out by financial advisory firm deVere Group, affirmed they regularly use financial technology to access and manage their money.
More than 880 people from the UK, Europe, Asia, Africa, Latin America and Australasia took part in the poll.
“Even two or three years ago, that figure would have been significantly lower," states Nigel Green, deVere Group founder and CEO.
"The fact that today 55% of people polled globally use fintech solutions on a regular basis highlights the staggering rate of the digitalisation of our everyday lives," he explains.
“And it is speeding up. From self-driving cars, genetic bio-editing to AI, new technologies are beginning to impact every part of our lives. Our financial lives are no exception. We’re in a new age," says Green.
Green says fintech firms are filling the void left between what traditional financial services companies are offering and what customers are now expecting, especially in terms of customer experience.
“In broad terms, this means immediate, on-the-go, 24/7 access to, use and management of their money. It means personalised, on-demand services. It means lower costs," he explains.
According to Green, fintech is already a major disruptive presence in the financial services marketplace.
"This trend is only set to grow as ‘digital natives’ - the first generation that grew up with the internet and smart devices – become ever more dominant in the workforce and in social and political roles," he says.
According to the data collected by deVere, emerging markets in Asia, Latin America and Africa are becoming the biggest growth areas for participation.
“This could be due to fintech typically offering more inexpensive solutions compared to traditional financial services," Green says.
"Also because these areas are home to many of the world’s 1.7 billion unbanked or underbanked population – those who don’t have access to or have limited access to financial institutions – and fintech allows this issue to be overcome.
Around two thirds (67%) of those polled used fintech apps to send remittances and money transfers. Forty six per cent use financial technology vehicles to track investments and/or accounts. Twenty eight per cent use them for storing and managing cryptocurrencies.
Green says fintech – a major part of the so-called 'fourth industrial revolution' – is a positive force for three key reasons.
“First, it is meeting clear and growing client demand for on-the-go services.
"Second, it is speeding up the advance of financial inclusion across the world. Helping individuals and companies successfully manage, save and invest their money will only result in a better society for us all," he says.
“And third, it gives firms the opportunity to diversify, cut costs, meet regulatory requirements and improve the client experience, which will help build long-term relationships and trust," Green explains.
“The poll underscores that fintech is the new normal.”