ERP News

The growth of FinTech and RegTech in financial services

363 0
Growth-of-FinTech

Growth of FinTech

Growth of FinTech-The financial technology (FinTech) and regulatory technology landscapes (RegTech) are booming, on the back of the growing opportunities they are offering financial services institutions. FinTech is helping players improve their customer propositions while bolstering the efficiency of their operations, and RegTech is enabling financial services institutions to radically improve the way they run their compliance processes. Experts at boutique consultancy CDCA reflect on the evolution of the FinTech and RegTech in the UK marketplace.

The Financial Conduct Authorities business plan for 2019/2020 states that the UK financial sector is one where the possibilities and risks are still unknown. This is the third instalment to the UK financial regulation bodies efforts to mitigate risks for consumers and firms from the leave process. The FCA has pledged to “make UK regulation smarter, focusing on the outcomes we want to achieve” and indeed, has stressed the importance of cooperating more with international regulatory bodies. This is ironic, given the fact that the UK is set to leave one of the biggest regulators globally. FCA chair Charles Randell, aims to ‘continuously’ update the leading bodies within the UK financial scene and claims that this is important for the future of financial regulation.

The existing scene is one where FinTech has reached a rate where it needs to be understood and regulated suitably. The UK currently houses most of the world’s upcoming and largest FinTechs, averaging £20 billion in revenue this year. Furthermore, the UK has seen the largest amount of funding in FinTechs, beating the US and China with approximately £14 billion in investments, notably during the first six months of this year. In retrospect, the revenues generated now is over seven times that back in 2015.

As the industry continues to grow, competitors such as Monzo have continued to receive strong backing from investors and venture capital firms. Last year, the company was valued at $1.5 billion and eyes ambitious plans to grow its consumer base in the future. The so-called ‘bank of the future’ aims to keep the company away from bigger institutions, notably, those who have been building their FinTech presence at a rather fast pace.

Read More Here

Article Credit: Consultancy.uk

Leave A Reply

Your email address will not be published.

*

code