How FinTech is changing the way the UK does business
UK businesses are becoming increasingly tech-savvy according to new research which found that 65% have embraced FinTech products or services.
FinTech (financial technology) covers tech-driven digital services and products such as online banking, services for online payment transactions, cloud-based software and online lenders.
The research, conducted by MarketInvoice, quizzed UK businesses on their awareness and adoption of financial technologies and found that 77% are aware of FinTech products and services.
Two-thirds (65%) have adopted at least one FinTech product or service and one fifth (19%) have adopted four.
According to the research FinTech products and services were adopted for various business processes as shown below:
- Business loans or invoice finance from online lenders (32%)
- Accountancy functions using cloud-based software (24%)
- Banking transactions (23%)
- Foreign exchange services (16%)
- Payment processing using bitcoins or other cryptocurrencies (11%)
What’s the appeal?
The research revealed many reasons why businesses are drawn to FinTech. These include:
Increased access to funding support
The FinTech market has played a major role in improved credit conditions for businesses.
Whereas in the past businesses have typically had to rely on high street banks and traditional lenders for financial support, nowadays there is a large number of online lenders who utilise financial technology to provide fast access to credit.
From business loans to releasing cash against unpaid invoices, there is a wide range of options available to businesses looking for a cash flow boost.
Saves time and money
More than half (56%) of business leaders said they were drawn to FinTech because it saves time and money.
By utilising cloud-based solutions and automating routine processes, businesses are able to become more efficient and free up time to focus on other aspects of running a successful business.
The research also revealed that adopters saved (on average) over £5,500 a year as result of using the FinTech products and services.
Impressive user experience
A third (34%) of business leaders said that they were impressed by the user experience offered by FinTech services.
Utilising these technologies has revolutionised the way businesses are run and it is now much easier for businesses to integrate with these new systems. This gives businesses huge scope for improving processes and, in turn, their company.
The research also revealed that almost one quarter (23%) felt FinTechs were more transparent on fees and provided a better customer service.
Ability to engage staff
FinTech products are also utilised to improve employee experiences. For example, 62% of businesses use FinTech to allow staff to report expenses and to automate payslips. Almost one in four (23%) use online pre-paid cards to allocate budgets to teams within their business.
Using FinTech in this way has the ability to engage staff as it makes many mundane processes simpler for employees to do.
As a commercial finance broker, we help match businesses with the most suitable lenders for their business’s needs, from traditional banks to FinTech companies. To discover if working with an online lender could benefit your business contact our team today on 0800 9774833 or firstname.lastname@example.org.