With an approximately 6.9% of the UK’s GDP in the financial industry and more than a million working in the financial technology sector, it is no wonder that companies across the UK are innovating their applications and processes aiming to open opportunities for more professionals. FinTech or Financial Technology is a rapidly booming and flourishing market. The market is increasingly rising in demand and getting fame due to the consumer’s willingness to access the e-commerce platform more. Thus, the rise of the technology and growth of FinTech is something not to be ignored.
What is FinTech?
The term FinTech or Financial Technology is used extensively in businesses depicting digital technologies and related applications access within the financial services sector. Earlier, it was commonly used to highlight computer systems using finance-related accounts. Recently, it is referred to describe all kinds of new financial technology, including the flexibility and services provided to consumers via different applications. Usually, FinTech companies invest in small-sized and innovative businesses utilizing the latest technologies aiming to bring their financial services into direct access to their consumers, much breaking the existing business frameworks.
FinTech is the creation of programs, applications, or other innovations that either improvise the existing financial services or support the new evolving ones. The technology is backing, strengthening, and boosting banks, developers, and consumers to think distinctively about money. Also, the thinking has changed about how money needs to be managed effectively, simply by shaking up the financial industry’s traditional model. The original FinTech revolution was the establishment of the core banking system in the early 1970s. It took away the requirement to process individual transactions on a manual basis by individual branches, leading to cut down in costs and providing more services to consumers with less money. The consumers got interested in their savings, began new businesses, make better-priced purchases, and enhance their living standards. Modern FinTech is also doing the good for financial admittance and incorporation. Customers are provided access to those financial products and services that are cost-effective, useful, sustainable, and responsible, and fixing those concerns that are available in the new form, instead of how traditionally money is managed.
FinTech UK on the Rise:
With the digital revolutionisation, the rise of Fintech companies London is quite indescribable and indeed, the change is an interesting one. The start-up companies starting to disorganize and interrupt the functioning of established competition in the industry and that is seen as an outstanding opportunity for all to grow. No wonder, Financial Technology is not only booming as a concept but is establishing as a financially fruitful and beneficial investment choice.
During traditional times, financial institutions were accepted and acknowledged as a bit slow-moving, as they struggle much to adapt to changes. Though, with the introduction of new government legislation, this working methodology has put down many consumer concerns related to security, especially while making a large number of transactions. The bigger institutions intentionally started refusing to co-operate in these actions. Thus, this had stopped scope for innovation in the past, but with the rise in technology, everything has changed and is still changing. And, this is where FinTechcomes into the picture. The changing consumer demands and necessities have put pressure on banking and finance institutions to modify the way of their working processes and operations. With much lesser concerns over the safety and security and more emphasis on the efficacy and speed, even the traditional financial institutions began changing the working ways they do business. FinTech is the one-stop source that is providing innovative and hungry companies a chance to push their already devised FinTechsolutions in front of everyone, into the light. It is adding and giving tough competition to the already established and competent financial services providers.
Fintech Payment Processing:
The key benefit of FinTech is the way customers use it to make the payments. The technology made the processes more efficient, rewarding and due to this, undesirable additions such as foreign transaction charges and transfer fees are less common. The entire process is helping to make the overall payment and transaction cost much cheaper. When it is about online shopping, bountiful of new payment methods are available that are secure and quicker than traditional ways. Along with streamlining the shopping experience of the consumers, the payment approaches made it easier for customers to collect payments using social media platforms, auction sites, re-sale applications, and more. The platforms used for payment and in extensive usage include PayPal, Android Pay, Apple, etc. The next big step for the payment FinTech technology is access to real-time payments simply taking out pending transaction charges out of the equation. Instant payments let customers avoid any kind of transaction fee or incurring overdraft fee and it helps to make the most of the wealth that they have.
AI (Artificial Intelligence) FinTech like Robo-advisors and chat bots are affordable means for customers to get access to up-to-date, and expert money advice without actually spending a penny on an accountant or a human advisor. Chat bots are functioning in different roles across diverse industries, but the sheer purpose of them is to cater to solutions customized in accord to individual consumer’s money concerns. These days, there are many chat bots offering banking advice and they intend to be quicker, and accurate. Different finance service providers are analyzing into chatbots delivering tailored service portfolios for consumers at lower prices, across different platforms and devices. The procedure is automatic, time-saving, and delivers the satisfactorily level service that consumers demand and seek in today’s time. The experience will be like getting a virtual financial assistant and a free advisor at your side, available round the clock. In short, Fin-tech is not only changing the way consumers are spending money, but also impacting the way they think about handling finances. And, through these basic means, it is reforming the traditional banking approaches, and what means for the future finances and the industry.
FinTech companies and applications in the UK:
Undoubtedly, the UK is one of the pioneering FinTech companies capitals worldwide. The volume deals occurring within the financial technology have been pacing at a decent percentage every year. This growing percentage is almost double the speed with which these firms are expanding at other corners of the world. The UK’s position as world-class top-notch financial solutions and trading hub, along with the access to investment funds and business capital, makes it the ideal breeding spot for businesses as well as financial technology to prosper. The question is, how is FinTech UK revolutionising the financial technology industry? How is the country using technology and growing at a rapid pace? On a business level, banks and financial institutions are changing the way they work earlier, and still doing in this fast-forward moving hub. Above all, if not all higher-level transactions and work processes are trusting on technology along with the fast pacing growing e-commerce sector including banking and other financial institutions, they are fighting and striving hard to keep it all up. The UK government assures to support and aid new emerging FinTech companies London along with providing adequate support and assistance to the well-established ones. Indeed, the scope of expanding and growing, and technology is revolutionising the UK and giving more room to succeed, prosper, widespread, as a preeminent FinTech capital of the world