The UK is heavily reliant on financial services with London being an important international hub. Recognising this, the Government has recently moved to build on it’s cultivation of the UK tech scene by supporting financial technology firms described as ‘FinTech’.
What is FinTech?
Simply the provision of financial services through technology.
Using technology in finance is not a new concept. From ATMs to Debit Cards to Online Banking and contactless payment – the financial industry has not previously been shy in adopting innovative ideas to make it easier for consumers and businesses to access their services.
However, as part of the wider culture change that has embedded technology in every area of our lives, the current scope of FinTech solutions is wider than ever.
Often it is the small startups who are best placed to develop solutions that challenge the norm.
FinTech can make it easier to transact anywhere, anytime, on a variety of devices. For example using a mobile payment apps in a restaurant or electronically transferring money across borders.
Applying FinTech to big data can help financial corporations understanding the habits of consumers and businesses to manage risk areas and identify emerging markets.
Embedding finance as part of the technology we use everyday, financial institutions such as banks and insurance companies are making it easier to communicate with them.
An obvious risk in the rise of FinTech is security. Verifying the user’s identity and securely transferring information over a public network are two of the most contentious technological issues in general and the industry will need to assure users that their platforms are secure to encourage widespread adoption.
Recently there has been no shortage of criticism for banks and similar institutions, which may make some more reluctant to be early adopters of FinTech solutions.
As the market matures there will no doubt be new legal and regulatory developments that firms will have to react to, and keeping up to date with these may not be easy.
FinTech is more than just a buzzword. In the UK, as in some other countries, financial technology has been developing for a number of years, however this new focus from the UK Government and the media looks to be accelerating the pace of these developments, which will benefit the wider economy.
How can we help?
Find out more details about how we can help on the following pages of our Website:
– Risk Management Solutions for the Finance Industry.
– ISO 27001, Information Security Management.
– ISO 27018, Protecting Personal Information in the Cloud.
– PCI DSS, Payment Card Industry Data Security Standard.
– Legal Compliance Audits.