New research has found that 65% of businesses embrace fintech. Business finance company MarketInvoice surveyed UK businesses on their awareness and adoption of fintech (financial technology) products and services.
77% of UK businesses are aware of fintech products and services and two-thirds (65%) have adopted at least one fintech application, with a fifth (19%) taking on four. These adopters reported saving (on average) over £5,500 a year as result of using the fintech products and services.
Interestingly, a tenth (11%) reported using bitcoins or other cryptocurrencies at some point in the past year in processing payments. Whilst the clear majority (89%) have not used cryptocurrencies, a fifth (21%) of these businesses expect these currencies to feature in their payment transactions over the next 12 months.
Businesses reported using fintech products and services for banking transactions (23%) and foreign exchange services (16%). Meanwhile, one in four (24%) reported using cloud-based software for their accountancy functions and a third (32%) used online lenders for business loans or invoice finance. Only 2% of businesses are using insurtech (insurance technology) services.
Bobby Lane, partner at accountancy firm SSH LLP, said “Most of our clients are now using cloud-based solutions and automating many of their routine processes. This means that I have more time to focus on advising my clients on strategic matters. Also, it’s now far easier for us to use fintech services because the ability to integrate with these new systems has opened up huge opportunities for improving processes”.
Business leaders are drawn to fintech because it saves time and money (56%) whilst a third (34%) were impressed by the user experience. Interestingly, a quarter (23%) said fintech’s were more transparent on fees and provided a better customer service.
Anil Stocker, CEO and co-founder of MarketInvoice said “The expansion of tech-driven digital services has been remarkable over the past 5 years. We know that consumers have been adopting tech applications into all parts of their lives, but our research shows that now UK businesses are also becoming tech-savvy.”
“Fintech applications are revolutionising the way business is being done from how employees report their expenses to the way businesses report their financial performance. Entrepreneurs always seek out the best means to drive their businesses and clearly fintech products and services are becoming a stable part of this approach.”
It’s not only business processes that are benefitting from fintech adoption. Companies are using fintech to engage staff. 62% of businesses use fintech adoptions for staff to report expenses (i.e. Expensify) and for payslips automation. A further 23% are using online pre-paid cards (i.e. Revolut) in allocating budgets to teams.
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1 Based on FSB statistics show there are 5.5m businesses in the UK, of which 1.3m are employing businesses. The £4.6b is achieved by multiplying 65% of 1.3m businesses by £5,500 (the average annual savings by adopting fintech services).
2 Results are from a MarketInvoice survey of 3,482 UK businesses conducted in August/September 2017. Respondents were manager, director and C-level post holders. The survey was conducted online and by e-mail.
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MarketInvoice is a business finance company with offices in London and Manchester. As the world’s leader in online invoice finance, they’re changing the way businesses fund their growth. MarketInvoice uses smart technology and proactive customer service to help businesses take charge of their cash flow, quickly and easily. Since 2011, they have funded over 70,000 invoices worth £1.5 billion (as of 31st August 2017).
Businesses can choose between having an open funding line against their outstanding invoices (MarketInvoice Pro) or financing invoices as and when they need to (Select). MarketInvoice delivers fast, flexible funding to help businesses do everything from pay suppliers and staff to launch new products and grow.
In 2013, the UK government via the British Business Bank, began lending to businesses through MarketInvoice. This partnership has now seen more than £100m provided to small businesses in the UK.
MarketInvoice is a member of the Peer-to-Peer Finance Association and is backed by private equity group MCI Capital (also invested in iZettle, Azimo, Gett, and Auctionata) and leading European venture capital fund Northzone (invested in Spotify, Trustpilot, and SpaceApe).