Collapse All
-
Overview
- Key issues covered in this Report
-
Executive Summary
- The market
- FinTech companies are driving use of financial apps
- Figure 1: Use of financial apps, 2022
- FinTechs are challenging retail banks for multiple account holders
- Figure 2: Current account ownership, 2022
- Declining financial confidence will boost the need for budgeting tools
- Figure 3: Financial confidence for the year ahead, 2021-23
- Companies and brands
- Nutmeg integration could strengthen Chase proposition
- Monzo refreshes brand and adds euro transfers
- Revolut continues to add paid tiers with Ultra level
- FinTech advertising surged in 2022
- Figure 4: Above-the-line, online display and direct mail advertising expenditure for selected FinTech and financial services brands, 2018-22
- Klarna and ClearScore lead the way as most-used FinTechs
- Figure 5: Use of FinTech brands, 2023
- The consumer
- Advertising investment has boosted awareness of Chase
- Figure 6: Awareness of FinTech brands, 2023
- Growing FinTech choice will mean more research for consumers
- Figure 7: Researching new financial providers, 2023
- Build awareness through referral codes and rewards
- Figure 8: Sources of information on new financial providers, 2023
- New providers must prove longevity to enhance trust levels
- Figure 9: Trust in new financial providers, 2023
- Big tech companies can expand into financial services
- Figure 10: Interest in tech companies providing financial products, 2023
- Savings accounts from big tech companies could prove popular
- Figure 11: Interest in financial products from tech companies, 2023
- Caution in the cost of living crisis is the biggest barrier for FinTechs
- Figure 12: Attitudes towards FinTech challengers, 2023
-
Issues and Insights
- Younger consumers provide growth opportunities for FinTechs despite the cost of living crisis
- Innovative digital banks can target the main account market
- Big tech companies can look to disrupt financial services
-
Market Background
- FinTech funding and valuations hit by difficult economic environment
- FinTech companies are driving use of financial apps
- Figure 13: Use of financial apps, 2022
- Open Banking creating new opportunities for FinTechs
- FinTechs are challenging retail banks for multiple account holders
- Figure 14: Current account ownership, 2022
- Continued branch closures pave the way for digital brands
- Figure 15: Bank and building society numbers, 2016-22
- FinTech challengers must understand the Consumer Duty
-
Market Drivers
- Continued high inflation could make consumers more cautious
- Figure 16: CPI and CPIH, 2019-23
- Declining financial confidence will boost the need for budgeting tools
- Figure 17: Financial confidence for the year ahead, 2021-23
- Increasing cost of daily essentials will make cashback offers more appealing
- Figure 18: Issues faced in the last two months, 2023
- Continued high inflation could make consumers more cautious
-
Competitive Strategies and Launch Activity
- Nutmeg integration could strengthen Chase proposition
- Monzo refreshes brand and adds euro transfers
- Revolut continues to add paid tiers with Ultra level
- Shops feature brings cashback to Revolut paying customers
- Revolut adds staking to expand cryptocurrency features…
- …and introduces instant messaging
- Starling Bank launches virtual cards and a new budget planner
- New digital challengers banking on ethical accounts
- FinTech Rita helps consumers to earn from their data
- ClearScore buys budgeting platform Money Dashboard
- Apple soft launches Pay Later in the US
- InsurTech Lemonade enters the UK market
- Klarna introduces late fees and greater personalisation
- Currensea looks to disrupt the travel money market
- Collapse of FTX could dampen confidence in cryptocurrency companies
-
Advertising and Marketing Activity
- FinTech advertising surged in 2022…
- Figure 19: Above-the-line, online display and direct mail advertising expenditure for selected FinTech and financial services brands, 2018-22
- …driven by digital bank Chase
- Figure 20: Above-the-line, online display and direct mail advertising expenditure for selected FinTech and financial services brands, 2020-22
- TV leads but most brands are taking a multichannel approach
- Figure 21: Above-the-line, online display and direct mail advertising expenditure on selected FinTech and financial services brands, by media type, 2022
- Nielsen Ad Intel coverage
- FinTech advertising surged in 2022…
-
Awareness of FinTech Brands
- Advertising investment has boosted awareness of Chase
- Figure 22: Awareness of FinTech brands, 2023
- Klarna advertising has produced strong awareness
- There is a lack of awareness of FinTechs beyond digital banks
- Advertising investment has boosted awareness of Chase
-
Use of FinTech Brands
- Klarna and ClearScore lead the way as most-used FinTechs
- Figure 23: Use of FinTech brands, 2023
- Digital challenger banks finding a market amongst younger consumers
- Figure 24: Use of digital banks, by age, 2023
- Younger Brits are embracing buy now, pay later brands
- Figure 25: Use of buy now, pay later brands, by age, 2023
- Cryptocurrency exchanges are attracting younger investors
- Klarna and ClearScore lead the way as most-used FinTechs
-
Researching New Financial Providers
- Growing FinTech choice will mean more research for consumers
- Figure 26: Researching new financial providers, 2023
- Older consumers are particularly cautious over new financial providers
- Figure 27: Researching new financial providers, by age, 2023
- Build awareness through referral codes and rewards
- Figure 28: Sources of information on new financial providers, 2023
- Price comparison sites can help target older consumers
- Figure 29: Sources of information on new financial providers, by age, 2023
- Growing FinTech choice will mean more research for consumers
-
Trust in New Financial Providers
- New providers must prove longevity to enhance trust levels
- Figure 30: Trust in new financial providers, 2023
- Digital banks can boost main account take-up amongst younger Brits
- Figure 31: Trust in new current account providers, by age, 2023
- Insurance brands can build awareness and trust through price comparison sites
- Figure 32: Trust in new insurance providers, 2023
- Boosting trust will be vital to mainstream adoption of Open Banking
- Figure 33: Trust in new open banking platforms, 2023
- Collapse of FTX could limit trust in the cryptocurrency market
- Figure 34: Trust in cryptocurrency providers, 2023
- New providers must prove longevity to enhance trust levels
-
Financial Services and Big Tech
- Big tech companies can expand into financial services
- Figure 35: Interest in tech companies providing financial products, 2023
- Younger Brits are keen on financial products from Amazon and smartphone providers
- Figure 36: Interest in tech companies providing financial products, by age, 2023
- Savings accounts from big tech companies could prove popular
- Figure 37: Interest in financial products from tech companies, 2023
- Big tech companies can expand into financial services
-
Attitudes towards FinTech Companies
- Caution in the cost of living crisis is the biggest barrier for FinTechs…
- Figure 38: Attitudes towards FinTech challengers, 2023
- …but there are opportunities for brands that can offer cost savings
- Figure 39: Attitudes towards FinTech challengers and value, 2023
- Regulation is an important step to alleviating concerns
- Figure 40: Attitudes towards FinTech challengers and regulation, 2023
- Branches remain important to most consumers
- Younger consumers are keen for innovation and market disruption
- Figure 41: Attitudes towards FinTech challengers and innovation, 2023
- Digital banks must highlight positive action on sustainability
- Figure 42: Attitudes towards FinTech challengers and sustainability, 2023
- Caution in the cost of living crisis is the biggest barrier for FinTechs…
-
Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
- Consumer research methodology
“The difficult economic environment has seen many FinTechs find it difficult to raise funding, with valuations falling. For consumers, there is more caution as household finances are squeezed, leading to a preference for established brands. However, innovative new providers that can offer cost savings and advanced budgeting tools have an opportunity to grow, particularly amongst younger consumers keen for market disruption.”
– Adrian Reynolds – Principal Analyst, Financial Services
This Report discusses the following key topics:
- Advertising and marketing activity of FinTech brands.
- Consumer awareness and use of FinTech companies.
- How consumers research new financial providers.
- Trust in new providers across financial services.
- Interest in financial products from big tech companies.
- Attitudes towards FinTech companies.
£ 1,495 (Excl.Tax)
- Pay via credit card or invoice
-
PDF, PPT and Excel download delivered instantly
Instant delivery when paying by credit card, invoice orders may take longer
-
Save up to 20% when you purchase multiple reports
Save 10% when you purchase two reports together.
Save 15% when you purchase three reports together.
Save 20% when your purchase four or more together.
Discount automatically applied at checkout
Need help before you buy?
Our research specialists can answer your questions and recommend the reports that best match your business needs.
Contact usTrusted by global industry leaders
We use Mintel to inform our thinking and reinforce strategy. If you’re presenting new ideas, it’s essential they are underpinned by robust data and evidence, and clearly rooted in fact.
Mintel gives us all that. It’s a great brand and one that is trusted by clients.
Marie Stafford, European Director, The Innovation Group, VML
We have such a great working relationship with Mintel on lots of different levels. As an insight partner, they have helped us to develop our business planning in specific categories as well as supporting our creative process but they’ve also been super helpful with facilitating our events in their inspirational offices near St Paul’s.
They’re an innovative company, with a client-focused team that always delivers.
Abby Carvosso, Group Managing Director, Bauer Media Group
We utilize Mintel Reports, Trends and Comperemedia to mine for insights across the numerous business verticals that Epsilon serves, such as CPG, automotive, telecom, healthcare/pharma, retail and financial services.
By integrating Mintel insight into new business opportunities, we have been able to gain the competitive edge necessary to advance partnerships with global brands and key business players.
For our organization, it’s about depth and breadth. Having one without the other doesn’t enable success in our business.
Virginia Harvey, Secondary Research Manager, Epsilon
When I’m investigating specific sectors I tend to use Mintel reports for their forecasting, which I’ve always found to be very accurate.
They also offer really broad and deep coverage in their reports. They are very, very detailed. For example, we were able to gain insight across a wide range of business areas from just one report, proving that Mintel is excellent value for money.
So overall, it’s the level of detail and the quality of forecasting that really stand out for me.
Rebecca Green, Market Insight Manager, Wincanton
We’ve found it so useful working more closely with Mintel. They helped support our recent flagship event for our top suppliers by providing a really unique viewpoint on the future of online retailing.
Nick Carroll from their Retail Team was also an excellent panelist, sharing useful and actionable consumer insights. We definitely look forward to working with Mintel again on future projects.
Zac Steele, E-Commerce Trading Development Manager, Waitrose & Partners
Need help before you buy?
Our research specialists can answer your questions and recommend the reports that best match your business needs.
Contact us
