Lockdown prompts rise in fintech app adoption, survey finds

By Daniel Lanyon on Wednesday 5 August 2020

Alternative LendingDigital BankingSavings and Investment

Since mid-March, almost one in five have started using an online banking service with take-up among young adults nearly one in two.

Lockdown prompts rise in fintech app adoption, survey finds
Image source: Photo by cottonbro from Pexels

The use of money management apps has seen an acceleration during the outbreak of coronavirus in the UK with more than half of the population (54 per cent) now using them regularly, according to a new survey.  

The new research, based on interviews with 2,000 UK adults, was conducted between 7th and 10th July 2020, sponsored by the Open Up 2020 Challenge, shows an increase in usage and trust of financial services apps since lockdown. 

More than a third (36 per cent) feel more comfortable using banking and money management apps since lockdown and almost a quarter (23 per cent) trust online banking more now than before lockdown. 

Four in ten (39 per cent) feel “terrified” of the financial impact of a second peak of covid-19 while nearly a third (30 per cent) of people across the UK are already preparing financially for a second lockdown.  

Lubaina Manji, Senior Programme Manager, Nesta Challenges, said: “While the economic picture coming out of the pandemic seems bleak, it’s encouraging to see many people actively seeking out tech solutions to manage their money and preparing for further uncertainty. 

Since lockdown, almost one in five (17 per cent) have started using an online banking service to help with these money management goals – such as Moneybox, Tully, Plum or Cleo. Take-up among 25-34-year-olds increases to 45 per cent. 

Increased mobile and online services usage is expected to continue after restrictions ease as more than two thirds (67 per cent) of users plan to keep it up after lockdown. And nearly half (45 per cent) say they would prefer if they could manage all of their personal finances by app. 

“Lockdown has contributed to a stark rise in app, mobile and online usage, which is not only helping more people become tech savvy but increasing trust in these digital solutions. This is good news for an industry that is always innovating and pushing the boundaries to provide better products and services for customers,” Manji added. 

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