The UK continues to be Europe’s most attractive location for international investment into financial services, with the UK’s fintech sector securing more than $9 billion of investment in the first half of 2022, ahead of Germany, Europe’s second biggest fintech destination, with $2.4 billion.

Brits are also significantly ahead of other Europeans in their embrace of digital forms of banking reports London’s Business newspaper City A.M.

City A.M. has reported new research, shared exclusively with them this morning, shows that people in the UK are nearly twice as likely as other Europeans to prefer applying for financial products and services online via website or app, including through online chat or video call functions.

They state: “Over half of Europeans still prefer to apply for new financial products – such as current accounts, credit cards or loans – in-person at a local bank branch.

“In comparison, in the UK only around one in five would now prefer to go in-person, showing consumers’ embrace of a digital-first approach to banking.

“The data underlines the advancements and innovations that the UK’s financial services and fintech sectors have made when compared to other sectors across Europe.”

According to the research, the UK continues to be Europe’s most attractive location for international investment into financial services, with the UK’s fintech sector securing more than $9 billion of investment in the first half of 2022, ahead of Germany, Europe’s second biggest fintech destination, with $2.4 billion.

The research, commissioned by European consumer and business credit information provider CRIF, surveyed thousands of people in countries across the continent including France, the Czech Republic, Italy, Germany, Slovakia, and the UK, to better understand their attitudes towards financial services.

Sara Costantini, CRIF’s Regional Director for the UK & Ireland told City A.M.:

“In a digitally dominated world, the way in which we go about our daily lives has changed, nowhere more so than in banking and financial services.”

She said “the UK leads the way in Europe when it comes to embracing digital and online methods, but there is still more we can do to utilise digital technologies to help more UK consumers to manage their finances.”

“While some are reluctant to share data as they are worried about fraud and security, we should work to allay these fears,” Costantini continued.

“Technologies such as open banking are not only safe but can lay the foundations for increased financial support during the current economic crisis,” she noted.

London’s Business Newspaper City A.M. report:

“While the UK’s embrace of digital financial services in comparison to the rest of Europe is positive, the research identifies several key challenges to furthering this progress and providing consumers with better services at a time when the cost of living is putting considerable pressure on people’s finances.

“Despite growing demand in the UK for more tailored financial products and services – with 34 per cent saying banks should doing more here to meet people’s specific needs at this time – nearly one in five (18 per cent) are still concerned that they would be sold products which aren’t right for them.

“When the issue of data is raised, over two-thirds of UK consumers (67 per cent) express concerns that sharing financial data leaves them more open to fraud, underlining the need to educate and reassure customers that innovations like open banking have high security standards and enables a range of consumer benefits.

“However, despite this hesitance, more UK consumers are acknowledging the benefits that sharing more of their financial information with providers can bring.

“CRIF’s research finds around a third of people in the UK would be prepared to share more financial information if it helped providers to better assess their financial situation and improve their ability to borrow (35 per cent) or increase their credit limit (31 per cent).

“The research also shows that younger generations (18-34s) in the UK are significantly more willing to share their data with financial providers, with 53% saying they’d be comfortable doing so if it enabled them to qualify for higher levels of borrowing.”

Click here for the original article on City A.M.

LEAVE A REPLY

Please enter your comment!
Please enter your name here