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Survey: 60% of Consumers Use Technology Tools Before Consulting Financial Professionals

S.J. Steinhardt
Published Date:
Jul 31, 2023

Sixty percent of financial technology users seek advice from fintech solutions before consulting their accountant or financial adviser, a survey by software and services provider Capterra found.

Perhaps more worrisome, 64 percent said that these tools have significantly reduced their need to interact with their financial adviser in general, and 45 percent of consumers say fintech could make working with a financial professional obsolete.

Capterra defined fintech as “an umbrella term that encompasses mobile applications, computer software, and other digital technologies that aim to enhance and automate traditional financial services for consumers.”

Fintech is popular with younger generations, the survey found, with 79 percent of those between the ages of 18 and 45 using it. Overall, 48 of consumers currently use fintech apps.

Survey respondents still found that these applications have drawbacks. Forty-one percent worried about the security of their personal and financial data when using these technologies, while 37 percent are frustrated by their hidden costs and 27 percent struggle with some applications’ limited fictionality.

Survey respondents showed an overwhelming desire to use these tools to manage their finances. Eighty-two percent used them for banking, 63 percent for payments, 57 percent for personal finance, 56 percent for investments, and 45 percent for budgeting.

There is still room for the human element, the survey found, as 57 percent of fintech users said that they still need—and prefer—accountants to handle complex financial tasks such as tax preparation. Forty two percent said they would especially prefer accountants to do their estate planning and 34 percent would prefer them to do their auditing and assurance services.

“Fintech has rapidly advanced within the last few years, changing how traditional financial services are offered and how consumers manage their finances,” Max Lillard, senior finance analyst at Capterra, said in a statement, CPA Practice Advisor reported. “While fintech won’t make advisors obsolete anytime soon, financial professionals need to adapt to changing consumer behavior and play up their strengths by augmenting their services.”

According to an overview by Lillard, Capterra’s Fintech Survey "was conducted in June 2023 among 876 fintech users to learn more about how they use financial applications (which includes everything from mobile banking to investment tools) and other resources to tackle handling their financial needs and how usage of these applications and resources has impacted their relationship and expectations when working with accountants. Respondents were screened to confirm that they use some type of fintech to manage their personal finances."

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