Europeans could avoid paying up to £7 billion* in financial charges every year thanks to digital innovation helping them better manage their finances, according to international money transfer company Azimo.
Azimo’s new research reveals nearly 90% of consumers in the UK, Germany, Spain and France now use technology to manage their money rather than traditional banking and accounting services.
Of the 1,000 consumers surveyed in each country regarding their methods of personal financial management, the vast majority (86%) believe new technologies will help them to avoid debt and unnecessary banking charges.
In fact, over half (53%) of the respondents believe that innovative financial technology has helped them save up to £100 a year.
Interestingly, Germans prove the most dubious when it comes to fintech helping them manage their money better, with almost 1 in 5 (19%) disagreeing with the clear majority of the respondents on the topic.
Spain takes the crown when it comes to being the most digitally savvy at managing their money with just under 70% (average across all countries surveyed is 57%) of Spanish respondents opting for a mobile app as their technology of choice for managing their money.
“Thanks to technology, overcharging consumers when it comes to financial management is now a thing of the past,” says Michael Kent, co-founder and CEO of Azimo.
“This new data is proof that technology is continuing to change the world of finance for the better and although there’s still a way to go to fully digitise the industry, it’s great to see the impact and benefits to consumers’.”
The leading reasons for these savings according to the respondents across all the four regions surveyed were varied.
The ability to move money instantly between accounts to avoid overdrafts and charges was significant, while having instant visibility of what they are spending allowed consumers to act more efficiently.
Finally, digitisation allowed consumers to manage direct debits and standing orders themselves, in a more flexible manner.
* Calculated via extrapolation based on the research findings and the following adult population figures of each country per Eurostat 2017: UK: 52,852,169; Spain: 38,952,433; Germany: 70,475,844; France: 53,547,864.