The Finance Tech Revolution
The UK financial technology industry (fintech) is worth around £20bn a year – and the sector is only growing.
Startups are beginning to challenge the UK’s large, established banking institutions and regulations are helping to break down the barriers to entry in the market.
Tom Beevers, CEO at StockViews – a company that connects fund managers looking for good investment ideas with a network of independent equity analysts – said fintech companies can have a “huge impact on the end savings for the customers”.
He said: “There’s a lot that fintech can do – not all of it is necessarily this huge thing that’s going to revolutionise the entire financial sector, but each one of them working in turn on a particular workflow or element of that financial service makes a difference.
“It’s about bringing down the cost of financial services generally, which has been far too high for far too long. It’ll take time for that cost to come down, but it’s one of the major impacts fintech companies can have.”
Stuart Hall, digital practice lead at digital consulting firm iBE TSE, an organisation that aims to bridge the gap between traditionalist banks and fintechs, believes fintech banks are challenging the bigger, incumbent banks to the point where they are “starting to reinvent themselves and really push innovation”.
Hall added: “The banks have, to a certain extent, rested on their laurels – but now have to be brave and take decisions they probably wouldn’t have taken 10-15 years ago. So the customer is really going to benefit all-round from having a better banking proposition.”
A report published by US banking group Citigroup found more than a third of European banks will disappear over the next decade. Citigroup said this is as a result of the growing fintech indsutry.
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