The majority of the British are not using technology companies for their financial needs and still mostly rely on banks, but that could change significantly in the next five years, a new study has shown.
A study entitled The future of finance: how technology is democratising the financial services sector, launched today by TransferWise, has surveyed more than 9000 adults all over Europe, North America and Asia-Pacific, looking into their financial habits.
According to the survey, three quarters (73 per cent) had never used a tech company for financial services, but by 2020, 40 per cent is expected to do so. In ten years' time, one out of five will use a tech company for pretty much everything, from credit cards to mortgages.
Moreover, 65 per cent of adults in the UK have said they'd use tech companies for financial services now.
Taavet Hinrikus, CEO and co-founder, TransferWise said: “The world of finance is about to change - for good and for the better. In five years’ time, the financial services sector will look completely different with a host of new providers and innovative new services. In ten years, it will be transformed. The main shift will be in our expectations and behaviour as consumers. Most of us are now happy to use alternatives to banks for more and more of our financial needs.”
The survey also suggests that ‘lighter’ services, including current accounts and savings accounts, will see a faster switch to fintech companies, while those bigger financial decisions, for example mortgages, will see a somewhat slower uptake.