Against the odds, businesses are embracing fintech

A recent survey found a high number of firms are adopting innovative solutions to traditional banking issues.

A recent survey found a high number of firms are adopting innovative solutions to traditional banking issues. 

Nearly two-thirds of UK businesses – 65 per cent - are regularly using fintech applications such as Revolut and Transferwise, according to recent research.

Invoice finance company MarketInvoice , itself very much in the fintech bracket, recently conducted a survey of UK businesses on their awareness and adoption of fintech products and services.

More than three quarters – 77 per cent said they are aware of fintech and two-thirds (65 per cent) have adopted at least one fintech application, with a fifth (19 per cent) taking on four.

These adopters reported saving on average over £5,500 a year as result of using the fintech products and services.

Businesses reported using fintech products and services for banking transactions (23 per cent) and foreign exchange services (16 per cent). Meanwhile, one in four (24 per cent) reported using cloud-based software for their accountancy functions and a third (32 per cent) used online lenders for business loans or invoice finance. Only 2 per cent of businesses are using insurtech (insurance technology) services.

Bobby Lane, partner at accountancy firm SSH LLP, commented: “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”.

Business leaders are drawn to fintech because it saves time and money (56 per cent) whilst a third (34 per cent) were impressed by the user experience. Interestingly, a quarter (23 per cent) said fintech’s were more transparent on fees and provided a better customer service.

Jerry Anderson, managing director of  wedding rings company Allied Gold is one such user.

“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,” he said.

Anil Stocker, CEO and co-founder of MarketInvoice says 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.”  

A further 23 per cent are using online pre-paid cards (i.e. Revolut) in allocating budgets to teams.

Somewhat surprisingly a tenth (11 per cen t) reported using bitcoins or other cryptocurrencies at some point in the past year in processing payments.  A clear majority (89 per cent) have not used cryptocurrencies, a fifth (21 per cent) of these businesses expect these currencies to feature in their payment transactions over the next 12 months.