Study shows a growing need for fintech
The pandemic has had a strong impact on virtually all areas of society. In this post, we talk about how the health crisis has had a marked "before and after moment" in the decision-making of the buyer, who now uses fintech solutions to manage their finances or make payments on every purchase. Fintech growth is an international trend, and are here to tell you why.
All fintech solutions grew during the pandemic
According to a study by McKinsey & Company, more than 23% of consumers use a fintech banking platform, making it the most popular type of banking today. Fintech banking platforms are the ones that grew the most during the pandemic. After fintech banking tools, payments through financial technology are the second most popular solution within the sector, with 16% of all consumers using this type of solution.
The use of fintech by age: more and more people are joining the revolution
Although it is the younger generations (Millennials and Gen Z) who make the most use of fintech tools to manage their finances or to make payments, Baby Boomers are an increasingly relevant group in the survey.
According to the McKinsey & Company study, Millennials and Gen Z featured an increase in new fintech users of 8% and 14%, respectively. However, 26% of Baby Boomers are already regular users of some kind of fintech solution, albeit at a somewhat slower rate of growth. This again shows that more and more users of all ages are embracing the benefits of financial technology in their daily lives.
It should be noted that there are differences in usage within the different age segments. While younger generations tend to use multiple platforms, the older ones prefer a single, more versatile platform.
More and more consumers trust financial technology
Trust is one of the factors that most limits the growth of any new tool coming onto the market. Giving up the convenience of traditional banking is perhaps the big step that many are reluctant to take.
However, trust in financial technology among consumers has made great strides, reaching the confidence levels of traditional banking. So much so that 27% of those surveyed by McKinsey & Company say they trust fintech banking more than traditional banking. Furthermore, fintech banking outperforms traditional banking in areas such as convenience, comfort, usability and digital experience, suggesting a brighter future for this type of banking.
Europe must jump on the financial technology bandwagon
As Cora Van Nieuwenhuizen writes for theparliamentmagazine.eu, European countries must join the growing fintech trend if they want to stay relevant within the international market.
According to Cora, financial technology allows both the consumer and the merchant to enjoy more transparent conditions of use, as well as greater freedom of choice and better, faster, and cheaper services.
We could not agree more!
It also focuses on the growing relevance of the data generated from the digitalisation of commerce. She notes that more than 80% of the total big data currently in existence has been generated in the last two years, highlighting the relevance of smart use of this tool by merchants at the service of consumers.
How to best embrace the fintech shift
Now that you know what everyone is talking about, you may want to know how to integrate a fintech payment solution into your business. Making the complex easy to understand is only within the reach of a total expert in the field. Since PayXpert was born in 2009, our goal has been to optimise our customers’ finances, making them feel in full control.
We want you to enjoy the fintech-isation process in your business, understanding step by step how it happens and the benefits it has for you, your team, and, ultimately, your business. If you want to know more about what we can do for you and your customers, visit our website to learn more about our solutions. Join the fintech revolution and step into the market of the future.