Nearly two-thirds of UK businesses are adopting financial technology (fintech) and making significant savings as a result, according to a survey conducted by business finance firm MarketInvoice.
The survey found 65 per cent of 3,482 UK businesses have adopted at least one fintech solution, with 19 per cent making use of four services. These fintech products are helping the firms to save on average over £5,500 a year.
MarketInvoice estimates that 65 percent of 1.3m UK businesses are therefore making this average saving, meaning a total of £4.6bn is being saved thanks to fintech.
“Fintech applications are revolutionising the way business is being done from how employees report their expenses to the way businesses report their financial performance,” Anil Stocker, CEO and co-founder of MarketInvoice.
“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.”
Businesses are using fintech products for services such as banking and foreign exchange transactions, while 24 per cent are using cloud-based accountancy software. Around a third of firms are using online lenders for loans and invoice finance, but just 2 per cent are using insurance technology services.
The reasons to use fintech were diverse: 56 per cent said it saved time and money, while 34 per cent said they liked the user experience. One such entrepreneur is Jerry Anderson, managing director at wedding rings company Allied Gold, who is using fintech for his business’ accounting and banking services.
“The user experience and service is far superior to what is available on the high street,” he said.
Some are also making use of digital currencies: 11 per cent of businesses surveyed said they had used bitcoin or another cryptocurrency to process payments, while 21 per cent expect to feature cryptocurrencies in their payment transactions over the next year.