Technology has created both opportunities and challenges for the financial services industry over the last decade. The expansion of online banking services has fundamentally altered the retail banking sector, while the development of online distribution channels is having an impact across the financial services industry. At the same time, a proliferation of websites that provide product comparisons, best buys, expert opinion and personal finance discussion boards are beginning to have an impact on consumer behaviour and the wider market for financial advice.

The use of technology, including PCs and mobile phones has, become integral to everyday life and the evolution of these products is continuing to shape innovation in the financial services industry. Recent developments include the expansion of mobile banking services and the emergence of contactless and mobile payments. However, as a significant number of people still retain some concerns about online banking security, providers are likely to face significant challenges in convincing people of the benefits of these newer forms of technology.

This report examines the impact of technology and the internet on the financial services sector. It considers recent developments in online and mobile banking and contactless payments, and also the emergence of the internet as a source of financial advice. Mintel’s exclusively commissioned consumer research provides an insight into the appetite for new technology, as well as the potential barriers. It also examines usage of the most popular personal finance websites, attitudes towards online sources of advice and the growing influence of social media.