One in five (21%) businesses in the UK believe that decision makers do not place enough value on technology and 24% do not understand how fintechs could help them, according to research by Centtrip, a leader in intelligent treasury management, payments and foreign exchange.
The firm surveyed more than 500 chief executives, chief financial officers and managing directors at UK companies and found that businesses that have decided not to partner with fintech firms cited their existing relationship with a bank (33%) and the difficulties of training staff to operate new technology (22%) as key reasons for their decisions.
However, well over half of those surveyed (56%) think fintechs offer services that high-street banks cannot, saying fintechs were more flexible than banks, and 54% said fintechs were better at helping businesses reduce costs. In addition, 42% of respondents said they trust fintech companies with their finances more than banks, with only 20% preferring to deal with high-street banks.
That said, the survey identified a difference of opinion between younger and older respondents. Seven in 10 (70%) of 18-34-year-olds interviewed said they would trust a fintech over a bank to handle their business’ finances in comparison to just one in ten (9%) of those aged over 55.
Brian Jamieson, CEO and co-founder of Centtrip, said: “Technology changes the way we work and is the key to success in all industries and it is great to see that businesses across the UK are waking up to this. The big banks historically have been burdened with a patchwork of legacy systems and institutional inertia, meaning they are no longer the ones who lead the charge in bringing efficiency to payments and company finance.”
“However big or small a company is, it’s crucial that it is equipped with the right tools and resources to maintain a competitive edge. Multiple sectors and industries are undergoing significant technology and AI changes, and if businesses don’t keep up, they will be left behind. Working with fintechs is a way to take advantage of innovative technology without having to introduce costly new systems.”