UK. Have we reached “peak fintech”?
Fintech has become so ubiquitous you can’t go outside without seeing an advert for a new payments card or a new app for money transfers, pensions or investments. Not only that, the United Kingdom has over 1,600 fintech firms – a number which is forecast to more than double in the next decade – that employ over 75,000 people and have raised more than £12 billion over the last five years.
For all the growth, however, the industry’s reach is as broad as it is shallow. The bulk of entrepreneurs and startups that emerged in the post-financial crisis fintech wave have gone after the low-hanging fruit of designing apps and offering pre-paid cards to individuals.
Now, with that market becoming increasingly saturated and competition for customers intensifying, much bigger opportunities await those willing to design solutions for the complex, multi-faceted arena of international business.
The fintech revolution is now moving to a new phase that will be all about corporate customers – call it fintech 2.0. To succeed, fintechs will have to become experts at harnessing the mountains of data at their fingertips and building strategic partnerships with other platforms, as well as financial institutions such as banks, rather than planning for their demise.
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