Consumers are ready to embrace tech for financial needs


New statistics collected by peer-to-peer lending company, TransferWise, show that an extra quarter of consumers will trust technology providers with their financial needs by 2026.

According to TransferWise consumer data, 68 per cent had never used a technology provider or fintech for their financial needs including lending, property investment, wealth management, ecommerce and international money transfers.

Over the next five years, close to half (48 per cent) of consumers will use a technology provider for a least one service, while a total third expect to use a technology provider for half or more of their financial needs; by 2026, this number will rise to nearly three quarters. TransferWise chief executive, Taavet Hinrikus , said: “For the first time ever, there is a real alternative to banks. Along with greater choice comes better services that are faster, better value and fairer.”

“There has been an explosion of tech start-ups rapidly involving the finance sector…slicing off a service normally run by a bank and doing it much better.”

Hikrikus said that SME lending, wealth management, international payments and credit card payments could all be run better by technology providers, when compared to the offerings of traditional financial services and banks.

“[Banks] make it hard for people to access money; even though it’s ours,” he said.

“With no real competition, the banks have been the only option for our financial needs for a very long time.”

TransferWise data found those in the 35-44 age group were the least trusting of services offered by alternative providers (25 per cent), slightly over the average of 17 per cent for other ages brackets.

TransferWise found that the most common uses of alternative finance services are for in-store payments, international payments and investment management.