UK relies on fintech during lockdown, study finds

Sixty-four per cent of adults in the UK have become reliant on mobile and online banking to manage their finances during lockdown, new research from Yobota has revealed.

The technology company stated that the figure is a sharp increase from before the UK went into lockdown, when just 42% of the nation were using fintech.

Yobota, which conducted an independent survey among 2,001 UK adults during June, suggested the most common uses of fintech have been to check bank accounts (88%), transferring money (80%), closing or withdrawing funds out of an investment (35%) and shopping around for new financial products (27%). The firm also highlighted that millions of people have also used fintech to open new savings accounts (26%), apply for credit cards (18%), and extend overdrafts (17%).

However, Yobota’s research also exposed that 15% of consumers have been frustrated by their banks’ poor technology, with this figure rising to 28% among adults aged between 18 and 34.

Another 31% of people said the lockdown has “opened their eyes” to the different ways that technology can be used to manage their finances, with 42% planning to continue using fintech more, even as bank branches begin to reopen.

Yobota CEO, Ammar Akhtar, commented: “In light of the financial distress caused by COVID-19, millions of Britons have needed fast access to loans, credit cards and overdrafts, not to mention advice and guidance. Crucially, they have had to rely on mobile and online banking for almost all of this.

“Today’s research shows how some people have found managing their finances during the lockdown simple, thanks to the advanced, easy-to-use fintech solutions deployed by their providers. However, others have clearly been frustrated and let down by their bank’s technology.

“This must be addressed. Even as the lockdown passes, people will not be in any rush to queue up in bank branches or have lengthy telephone calls, meaning financial services companies must keep pace with the demand for fintech. As the survey results show, those who don’t risk losing customers.”

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