In the UK, the FinTech industry is continuing to grow. In fact, it seems there is little that can slow down the British financial technology businesses, not even Brexit. During the first half of 2017, FinTech startups in the UK received a record £433 million from investors, representing a 37% increase from the same period in 2016.
Rapidly becoming known as the FinTech capital, the UK is at the forefront of innovation. With investment on the rise and new technology that could revolutionise the financial industry, it has the potential to impact all aspects of the financial sector, from how transactions are processed to the way banks operate.
Here are three of the leading FinTech trends, as well as their applications and implications on the UK’s financial industry.
The Use of Blockchain
Data security and fraud are two ongoing concerns for businesses across the financial sector. With threats that could compromise the safety of personal data, as well as a firm’s reputation and finances – breaches can cost firms millions – the use of blockchain could see major improvements in this area.
While still used predominantly for cryptocurrency, such as Bitcoin, this encrypted ledger offers both security and transparency. From the way sensitive data is handled and stored, to cross border payments, blockchain could alter the way financial firms in the UK – and across the globe – operate.
The Introduction of Artificial Intelligence
Artificial intelligence is a topic that has dominated headlines across multiple industries, with AI beginning to transform the supply chain process. In addition, the introduction of AI within the UK’s financial sector is empowering firms, resulting in faster, more accurate processes.
AI could see improvements in services for firms across the industry, including investment and wealth management companies like Wellington Funds. This includes developments in areas such as predictive analysis (to analyse market trends) and an increase in automation (to improve customer service).
The Increase in Mobile
Lastly, while the use of mobile banking apps and services has been steadily increasing in the UK for some time, the FinTech boom is continuing to make further innovations in this area.
In a response to the e-commerce boom, FinTech companies are finding new and more convenient mobile solutions. As such, this means we can expect a rise in the number of mobile payment options, such as integrated payment services (especially social media shopping) and mobile wallets, to meet changing consumer shopping habits and demands.