Finance services

60% of UK adults have used integrated financial services in the past year

Research by Temenos found that two out of three adults have used integrated financial services during the online payment process in the past year.

Temenos has discovered an explosion of growth around integrated finance trends in the financial industry in recent years in a recent white paper.

The study shows that four out of five adults (aged 18-34) have used integrated financial services in the past year. This includes Buy Now Pay Later (BNPL) payments, rounding up at checkout to donate to charity, buying insurance with a high-value item, taking out a loan at checkout or electronic wallet services such as PayPal and Google Pay.

Additionally, the report found that 42% of UK adults have used e-wallet payment methods in the past year, with 51% of them aged between 18 and 34. The growing use of integrated payment methods suggests the convenience and user-friendly nature of financing options integrated into everyday shopping.

The report also covers the rise of open banking around the world and the emergence of new business models to adapt to a changing digital ecosystem. According to Temenos, Banking-as-a-Service (BaaS) changes the traditional approach to financial services by creating a protected, contextualized and end-to-end service for consumers.

Kanika Hope, Chief Strategy Officer at Temenos, said: “From retailers to airlines, ride-sharing apps and coffee chains, brands are integrating financial services into their online and mobile offerings to boost revenue. , retain their customers and gain deeper insights into their customers.The results of this survey show that the use of these services is starting to grow, especially among Gen Z looking for online experiences. seamless and integrated into their daily lives. This presents new opportunities for incumbent banks as well as new entrants like banking-as-a-service providers.”

Integrated finance is being adopted by several major players to capitalize on the trend. However, with the rapid growth of alternative payment solutions comes regulation, and some forms of integrated finance, such as BNPL, are coming under increased regulatory scrutiny.