Research shows demand for banking marketplace among UK consumers

A report from Travelex Currency Solutions has found nearly 60 per cent of UK consumers want access to a banking marketplace to enable them to manage multiple accounts more easily.

The study surveyed 1,000 UK consumers and found that the number of money-related accounts has increased, with more consumers choosing to open accounts with fintech companies and challenger banks.

Rise

The report showed that the number of fintech providers being used has increased significantly over the last ten years, with a rise of more than 50 per cent, compared to just 11 per cent for traditional banks. E-wallets and international money transfer accounts have seen the biggest increase in use at 80 per cent and 29 per cent respectively.

UK consumers, particularly millennials, were found to be feeling frustrated with managing multiple accounts, with this issue being cited by 42 per cent of respondents.

More than half of respondents said they were considering closing their account as a result, while 59 per cent called for their bank to combine their accounts into a single marketplace. Just 18 per cent of respondents said they want a tech company to provide them with this service.

Younger consumers were found to be the biggest users of fintech, with nearly a quarter of respondents aged under 36 holding three or more fintech accounts.

Encourage

Commenting on the benefits of banks offering a marketplace, Travelex Global Head of Product and Operations, International Payments Colin Swain said: “By consolidating and helping consumers to manage their accounts, banks can help make sense of this fragmented financial landscape. In turn, this marketplace approach will encourage people to use an even greater number of services in the comfort that it won’t create more frustration.”