Your Friday fix for global fintech and payments news
This week we are looking at the banking and payment trends that have come about during the events of 2020. We take a look at the amount of mobile fintech applications downloaded over the pandemic, how consumers still have safety concerns when it comes to Open Banking and the soar in electronic payments.
Our weekly round-up brings you a dose of some of the biggest news announcements from the past seven days so you can keep an eye on all that’s shaping our world this week.
- Fintech apps outperform banks as pandemic shakes consumer finances
- Consumers still wary of Open Banking
- Electronic payments surged for banks in 2020
During 2020 finance apps saw a huge uptake in downloads, increasing by 15% globally. According to mobile analytics platform, App Annie, Fintech app downloads exceeded the more traditional banking applications by more than tenfold.
In total, 2020 saw 4.6 billion downloads of finance applications and consumers spent 16.3 billion hours checking their finances via these apps.
Mark Ellis, CEO and co-founder of Liftoff said: “Covid-19 and the ensuing financial uncertainty resulted in users spending massive amounts of time on finance apps throughout 2020, and more readily activating in-app, with rates up a third to 25.1%.”
A global study from banking platform Mambu, has shown that 52% of consumers have never heard of Open Banking. Of the 2,000 consumers surveyed, 61% responded to say that they have never used Open Banking, but 80% said that they do use one or more mobile financial apps.
48% of consumers said that they were worried about the security aspect of Open Banking and 24% said that their bank could explain the benefits and safety of using it better.
Elliott Limb, Chief Customer Officer, Mambu, said: “The research reveals the majority of customers don’t understand what open banking is, how it works and what it means for them. But it also reveals they do care about receiving better financial services that support their lifestyles - smart banking. If banks address this need and lack of understanding, it will help banks build customer loyalty and provide genuinely innovative, differentiating, revenue-generating services.”
Digital payment volumes have been steadily climbing for the past 8 years and 2020 saw an increase of 8.2% in volume and 10.8% in value in comparison with 2019, according to automated clearing house association, Nacha.
These statistics equate to 81 payments made for every person in the US during 2020. The increase was driven by the effects of the pandemic, in which both businesses and consumers made the switch to online payments.