What is Fintech? Growth & Importance in the UK
What is Fintech? As discussed in our Technology Trends in 2016 article, the best innovations are those that disrupt the common way of thinking.
One such innovation is the rapidly-developing conecept of technology applied to financial services – otherwise known as Fintech.
If banks can’t find a way to compete or partner with Fintech firms, it’s reported that they will lose $1 trillion in profit globally.
What is Fintech’s role in the future?
Startups who couldn’t compete with banks by outspending them are now able to out-think them. If you can create a cheaper and quicker online service, both users and investors will come flocking.
The UK and Ireland is the fastest-growing area for Fintech and deal volumes here have been growing at an average of 74% a year since 2008.
What is Fintech’s importance for the UK?
The simple reason is that it helps businesses become more effective. It enables them to operate faster and better and makes life easier.
Being global leaders in Fintech is therefore incredibly important for the economy in the UK.
Adrea Leadsom, former Economic Secretary said in a speech: “Its real power lies behind the effects of such impacts; adding to consumer choice, fuelling growth and ultimately boosting the economy in a way in which everyone can benefit.”
What does it mean for the Finance Sector?
In the finance sector, costs arise from the management of information and the execution of transactions.
Therefore the function of technology in these areas is very important in reducing costs and maximise profits.
Managing and maintaing this technology is a challenge in itself, and that’s where we can help. For a full audit on your systems and network, call us on 0208 232 1190 or send us an email.