SME FinTech preferences and priorities
Another major trend was the increasing number of SMEs joining FinTech ecosystems. These ecosystems integrate various products and services offered by challengers, financial incumbents and non-financial institutions. Unsurprisingly, those adopting FinTech ecosystem solutions were those who take a technology-first approach to problems – 93% of adopters prefer to find a tech-first solution where possible, including when facing new regulations.
Those SMEs adopting FinTech were also much more likely to consider new services carefully. For example, 98% of SME adopters said they regularly review their technology to make certain they’re using the most appropriate options. And when changing service providers, they are more likely to seek advice from multiple sources, such as business advisors, government officials, and professional and industry contacts.
Compared with consumers, SMEs were more willing to share their data with FinTech companies, over and above other third-party service providers. As many as 89% of SME adopters said they were willing to share their data with FinTech companies, versus the 70% who would with other financial service companies, and the 63% who would with non-financial services companies.
The future of FinTech
These findings show that various factors are driving the FinTech space forward – including increasing consumer and SME familiarity with FinTech products and services, attractive rates and increasing ease of portability to a new account.
But with adoption now also increasingly happening in the business market, there is a growing opportunity for FinTech firms, incumbents and non-financial organizations alike to seize the wave of FinTech disruption. With signs of rising trust in the concept of FinTech from consumers and business alike, the growth of the sector shows no sign of letting up.