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Use of fintech apps soar

28 April 2021

The use of fintech apps soared during Covid-19 as the pandemic prompted a shift in the way people engage with their finances.

New research from deVere Group found the use of fintech apps increased more than 61% in the past year, marking a “personal finance revolution”.

James Green, divisional manager of Europe at deVere Group, said: “Pre-coronavirus, we were already in an exciting new era driven by the lightning pace of the digitalisation of our everyday lives. But like so many areas of our lives, the pandemic has accelerated this trend.

“The jump in usage of fintech apps from existing clients, and a sharp increase in enquiries from potential ones, underscores that people are becoming more tech-savvy than ever. Like never before, people are embracing the convenience of immediate, low-cost access to, use and management of their money.”

Nigel Green, founder of deVere Group, believes this trend will further increase in the financial services sector as client expectations grow.

Green explained: “We’re seeing seismic and far-reaching shifts in client expectations. As the world moves towards an ever-more digitalised and globalised future – which is increasingly influenced by those who’ve grown up with ‘on-the-go’ tech – this phenomenon can only be expected to gain momentum. The way we save, invest, use and manage our money has changed forever. We are witnessing a personal finance revolution.”

Green believes this trend will help to speed up financial inclusion across the globe, particularly for those who have been unable to access financial services previously.

In addition, it will allow firms within the sector the opportunity to diversify, reduce costs, meet regulatory requirements and enhance the client experience.

Ross Laurie, CEO of Visible Capital, whose technology helps deliver more efficient, compliant onboarding of clients and suitability of advice for financial advice firms, says: “A major effect of the pandemic has been to make many more people familiar with digital technology, and using it in their everyday life. As well as making them more comfortable with technology, it has shown them what is possible and so raises their expectations of the kind of service they want from their financial advisers in five prime areas – accessibility, convenience, efficiency, speed and security.

“The world has moved on and advice firms that use technology to help deliver on those five fronts are already stealing a march on the rest of the market.”

Professional Paraplanner