Almost four in every five UK adults (78%) are managing their finances digitally, a new study by Aegon has revealed.

The findings also indicated that more than a quarter (26%) said they are now more confident doing this since the beginning of the COVID-19 pandemic.

Aegon said its research shows that technology adoption progressed during the COVID-19 pandemic as the lockdowns drove people to digital processes, and has resulted in a growing confidence in use of technology, especially when it comes to managing finances.

According to the research, which was based on a study of 2,000 people, confidence is even higher in younger age groups, with 42% of under-35s more confident about managing finances digitally.

Aegon head of pensions, Kate Smith, commented: “The pandemic accelerated digital adoption and our research shows confidence has grown when it comes to managing finances digitally. People are looking to view their balances and transact ‘on the go’, with apps and online websites the preferred method for doing this.

“Digital services have created opportunities to engage people with their finances in new and innovative ways and financial providers can use these platforms to help support their customers. This could be via access to budgeting or goal planning tools or helpful information and articles to building financial wellbeing.”

However, whileAegon;s findings suggest confidence in digital use has risen, the firm stated that people remain wary of financial scams. Overall, the research found that 62% said they are concerned of scams when managing their finances digitally, but nearly a third said (32%) they were not concerned. Scam concerns were highest among the over-55s age group.

“While digital confidence has grown, so too has the threat from scams,” Smith added. “Fraudsters have moved online and look to take advantage of the digital transition using evolving technology to their advantage. 62% of adults in our research were concerned of scams when managing their finances digitally, but this still leaves a good proportion not concerned about the threats they might face.

“The cost of living crisis could leave more people vulnerable to falling victims to fraud as they are lured in by investments offering higher returns or look to take out loans. It’s important that we keep scam awareness at the front of people’s mind, especially when managing their finances and transacting online.”

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