Banking

Will Brits actually adopt Fintech? YouGov research says no

By Oliver Smith 17 December 2015
Summary

We love our smartphones but, when it comes to money, the vast majority of us don't want new technology.

We’re bullish at The Memo on the imminent arrival of new financial technology (Fintech) that could soon revolutionise banking, but not everyone’s as convinced.

While mobile banks like Mondo and Tandem will infuse our current accounts with smart mobile technology, transfer services like TransferWise are slashing the cost of sending money abroad and high-tech investors like Nutmeg are changing the way we save, most people are still unconvinced.

Read more: 4 mobile challenger banks worth watching

Some 59% of Brits never use mobile banking, 82% never use PayM (a simple way of sending money using only a mobile number) and 78% say they would never use banking services from tech companies like Google, Apple or Facebook, according to research of over 2,000 Brits from YouGov and ACI Worldwide.

And to pour further cold water on new challenger banks launching next year, the vast majority of current account holders in the UK (88%) have zero intention of switching bank (indeed only a paltry number of people ever change bank accounts).

Dean Wallace, ACI Worldwide’s mobile payments global business lead, said:

“The results appear to fly in the face of the popular ‘banking disruption theory’ and suggest that the majority of consumers are in fact loyal to their banks, that they don’t really like change and are staying put.”

Although Mondo, Tandem, Atom, etc will surely argue that consumers have never before been presented with a real reason to switch.

Read more: 2016 Fintech Predictions – from open banking to the dawn of mobile commerce

There are some signs of hope, internet banking it used at least once a month by 76% of people while 29% of Brits are now paying regularly via contactless cards.

Will Fintech end up as a damp squib if no one wants to change from the systems and services they know?

Well, they said the same thing once about the internet.