60 percent of consumers prefer a fintech app to an accountant
Fintech apps have simplified financial management to the point where 60 percent of people will now seek advice from personal finance tools before reaching out to financial professionals.
A new survey from Capterra makes gloomy reading for accountants as it finds 64 percent of fintech users feel that these tools have significantly reduced their reliance on financial advisors.
"Fintech has rapidly advanced within the last few years, changing how traditional financial services are offered and how consumers manage their finances," says Max Lillard, senior finance analyst at Capterra. "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."
Consumer fintech has resonated the most with younger generations and the middle class -- both of which appreciate the convenience and accessibility of these digital tools. Millennials and Gen Z account 55 percent of fintech app adopters.
The most popular solutions for fintech users include banking (82 percent), payments (63 percent), and personal finance management tools (57 percent). Overall, 73 percent of fintech users actively use between two and five tools, which include everything from do-it-yourself investing apps to AI-powered planning tools.
It's not all bad news for accountants though, despite the high adoption of apps, some fintech users still prefer to employ an accountant to handle tax planning and preparation (47 percent), estate planning (42 percent), auditing and assurance services (34 percent), and business consulting (28 percent).
Apps aren't without challenges either, 89 percent of fintech app users say they've encountered issues while using them. Security is the top concern, with 41 percent worried about the safety of their personal and financial information. Users also report encountering hidden costs and technical issues.
You, and your accountant, can find the full report on the Capterra site.