Number of current accounts rise as fintechs boom

An increasing number of adults in the UK now have products from a range of different financial providers, as the rise in financial technology (fintech) has drawn the attention away from traditional high street banks.

According to data from peer-to-peer lending firm Zopa, one in three Brits hold two or more current accounts, an increase of 36 per cent when compared to the figure reported in 2015. The statistic comes amid a growing trend of consumers shopping around for the best offers, with the average person having products from seven different financial providers.

Furthermore, the data revealed that two-thirds of adults in the UK are using products from organisations other than their main current account provider, with insurance and investments proving to be the most popular products held elsewhere, followed by stocks, shares and ISAs.

The research suggested that consumers do not feel pressured into displaying loyalty towards traditional high street banks, as challengers and fintechs offer competitive deals on credit cards, loans and mortgages.

Of those surveyed, over 50 per cent claimed they did not think their bank acted with customers’ best interests at heart, while three-quarters stated they no longer needed a relationship with their primary bank, regarding it as purely functional.

Commenting on the data, Zopa chief executive Jaidev Janardana said: “The last decade of fintech revolution has fundamentally changed the way people bank in the UK.

“Technology is enabling consumers to take control of their own finances, resulting in traditional banking relationships becoming purely functional. The apathy on which the traditional banking model has relied will soon be resigned to the past.”

Furthermore, figures published last month highlighted that the UK is the global leading fintech hub, attracting investment of more than £4.5bn over three years. According to Zopa, the expanding range of providers will result in Open Banking allowing fintech firms to continue on their successful path.

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