The advent of open banking has been one of the most transformative developments in the UK’s financial sector, paving the way for the thousands of fintech startups that have formed arguably the sturdiest pillar of Britain’s wider tech ecosystem.
With open finance technology, managing, moving and understanding money has become far easier, but the economic challenges faced by people in the UK and beyond are growing rapidly.
At a time of economic uncertainty, consumers and businesses are faced with vast challenges when it comes to fund management and securing their financial futures.
Open finance has provided a glimpse of what modern finance companies are capable of offering, and at a time where technological innovations are coming faster than ever but personal finances are becoming more difficult to manage, it is likely that open banking-powered fintech will be positioned as an essential tool.
It was in this spirit that Plaid – a multinational fintech company that works with firms to connect bank accounts with fintech user connects – set out to understand the public perception, use and needs of UK consumers.
Plaid’s latest report, The UK Fintech Effect, surveyed 2,000 UK adults to understand which population groups are using fintech, how they are using it and what they feel about what comes next.
Fintech usage in 2025
As one of the most advanced countries in the world when it comes to fintech and financial services, it is hardly surprising that Plaid found over three-quarters (76%) of UK adults are using fintech services, which jumps to over 80% among Millennials and Gen Z.
The most common use of fintech among the survey is unsurprisingly payments, while services such as budgeting, investing, lending and tax management were also noted.
As fintech adoption has grown, so too have changes in consumer behaviour. While conventual wisdom suggests low churn rates for banking customers, Plaid notes that the availability of so many banking and finance options has made consumers more responsive than ever to better offers.
The report notes that the primary motivations for switching fintech apps are lower fees (43%), enhanced security and fraud protection (36%) and better money management tools (29%).
According to Zak Lambert, Plaid’s head of product for Europe, the more that companies, from larger incumbents to startups, put financial data to work in support of the customer, the better.
“In the early days, open banking was about making financial data held at traditional institutions available online and enabling consumer access and control. People tried that, embraced it, and now they’re looking for more ways to put that data to work,” he said.
Plaid suggests that the growing reliance on fintech to manage finances is the logical response to the pressures of inflation, stagnant wages and economic uncertainty.
As financial pressures become harder to juggle – particularly among younger consumers – leaning into the management, education and support aspects of fintech will be essential for success in the industry.
“Institutions have a massive opportunity to deepen their relationships, so long as they can provide the most useful apps and services,” Lambert added.
“Ultimately, the demand for these applications has now been proven, and banks are well-equipped to provide new tools to their users if they choose to do so.”
Are consumers ready for AI in finance?
While AI technologies have been presented as powerful tools that could revolutionise all manner of sectors, there has been caution when entrusting the same technology with people’s finances.
However, Plaid’s research has found that in the UK, there is a real appetite for increased use of AI in fintech.
The majority of UK adults feel comfortable using AI for tasks including finding ways to lower bills and fees (61%), getting financial education (60%) and budgeting and spending advice (58%).
The report indicates that consumers are generally comfortable using AI for lower-risk financial tasks, such as subscription management and customer service enquiries.
The respondents became more split when it comes to high-risk financial activities, with only half of respondents reporting they would feel comfortable receiving investing advice and addressing security concerns with AI.
Interestingly, over a third of respondents (38%) were happy for AI to make their investment decisions, file their taxes with no oversight and manage their overall finances with minimal human input.
Lambert suggested that consumers in the UK have become more comfortable with the technology due to exposure.
“The more they use it, the more comfortable they become applying it to different contexts,” he said.
“If AI can help automate other routine tasks in a person’s life, then why shouldn’t they apply it to their financial chores from paying bills to putting away savings?”
Regulation and security must remain top priorities for developers, but Plaid’s research indicates that there is a genuine market for responsibly delivered services.
