NEWS26 June 2017

Consumers open to fintech but data privacy concerns remain

Finance Innovations News Technology UK

UK – The majority ( 88%) of people who manage their finances online think tech improvements will lead to better products, according to new research from Strive Insight.

Money banking finances_Crop

However only 53% of this group are currently using their bank’s mobile app. And worries about data privacy are evident. Only 19% of consumers strongly agree with the statement ‘I know how tech companies are using my data to improve products and services’ and 90% feel uncomfortable about third parties accessing their data to build new products and services.  

But consumers are open minded to trailing new digital providers – 69% said they are open to trialling a new product if it offers a clear benefit, regardless of who is offering it. Sixty-five percent agree that banks, rather than new digital providers, are most likely to offer high quality financial services. 

However a significant proportion ( 41%) didn’t think big banks would exist in 20 years’ time.

Strive identified four challenges that fintech companies need to address:

  • Overcoming inertia towards change in the financial services market
  • Delivering tangible benefits to meet high consumer expectations
  • Removing consumer fear and the mystery that surrounds fintech technology
  • Creating consumer trust in the brands within the fintech sector.

Mark Yeomans, co-owner of Strive Insight said: “This is an incredibly interesting time to be involved in the financial services sector with exciting developments in fintech opening new doors.  Consumers are wary of change and providers will need to not only give them a reason to engage but will also need to develop a deep understanding of the consumer mindset if they are to succeed” 

‘The Future of Fintech – A Consumer Perspective’ is a study into people’s attitudes towards the financial technology (fintech) sector conducted by Strive Insight. It involved both qualitative and quantitative research with a sample of 1,000 quantitative online interviews (among 18- to 55-year-olds who manage their finances online) as well as a series of immersive, 90 minute interviews.