We recently completed a short survey with our Fintech Beacon community to understand a bit more about the behaviour of today’s digital financial consumers. The community is made up of users of digital-only banks and robo-advice based investment platforms, so not surprisingly most describe themselves as ‘tech savvy’.
Early adopters of technology
When asked about the tech devices used, we found that over half (54%) of those members who completed our survey are already using a smart speaker (e.g. Amazon Echo, Google Home) in their home. It is clear that this group of consumers are engaged with new gadgets, especially those that make their life easier, more efficient and offer something more personalised.
This doesn’t stop with in-home devices either, as the key features of their ‘ideal’ financial provider include offering instant access to updates and support, innovative and sleek features, as well as delivering a tailored service, aimed at their individual needs and preferences.
Leading the way in Open Banking take up
If this is what they are looking for to support their financial lives, it is likely these types of consumers will be leading the way in the take up of Open Banking, which launched in the UK on 13th January. This initiative will give bank customers the option to share their transaction data securely with other banks and third parties, who will deliver enhanced services and benefits, through digital channels. These benefits will include having a single view of all finances and the ability to find better deals and products based on actual spending behaviour.
A study by Accenture last year found more than half (53%) of consumers said they will never change their existing banking habits and adopt Open Banking. This may be the case, at least in the early days, for the majority of regular financial consumers, who remain loyal to their traditional banks and claim concern about the security risks of sharing their data. However, among the Fintech Beacon members who participated in our recent survey, the majority (83%), said they were either ‘very interested’ or ‘somewhat interested’ in using Open Banking. The perceived benefits centred on having access to all financial products in one place as well as gaining access to tailored offerings:
“I have lots of accounts with different banks and financial service providers, and if I could view and manage all of those accounts via one app it would make my life so much easier.”
“With so many ads and options it’s nice to know I can have clear information on products relevant to me and my financial situation in one place”
Keeping all your bread safe in one place!
So, smart speakers and Open Banking will be used by members of our Fintech Beacon in 2018, but what does the Paul Hollywood bread bin have in common with these? The answer is that it will also be used by members of our community!
In our recent survey, we asked Fintech Beacon members: “What was the most interesting thing you bought this Christmas?” While many of the responses were technology focused (e.g. Amazon Echo, VR headsets, 3D printing pen, wireless lighting) this more functional response caught our eye. Perhaps our claim is not entirely true as it may have been bought as a gift, so they would not actually be using it themselves.
However, maybe the link between Open Banking and this bread bin is not so obscure after all. Open Banking will provide customers a secure way to manage and control all their financial activity in one place, which is not dissimilar to how this advert describes the Paul Hollywood bread bin:
“It’s not so much a bread bin as a bakery store… Paul’s made sure there’s enough room for a fresh-baked loaf, plus bread rolls and pastries too. It’s the easy way to keep your kitchen tidy and organised.”
Let’s all get baking!
How to access Fintech Beacon
If you’d like to understand more about early adopters of Open Banking, or have any other research needs in the fintech space, please get in touch to discuss using Fintech Beacon to conduct your own cost effective and quick turn-around research.
For more information please contact Georgina Clarke in our financial services team: