VENTURE CAPSTONE: FUTURE TECHNOLOGY IN FINANCE
In our ninth report for client the London Technology Club, we published a 50+ page report into what the future holds for the finance industry enabled by technology. We wrote a summary for a feature in the Mayfair Times Magazine. Below is what we wrote for the magazine, a quick synopsis of the findings of our report…
The notion that ‘banking is everywhere but never at a bank’ is coming true. To download the full report please CLICK HERE
TECHNOLOGY BREAKING DOWN BARRIERS IN FINANCE IS CRUCIAL TO LONDON’S FUTURE…
The UK and especially London, is the ‘fintech’ capital of the world. London has the highest concentration of financial and professional service firms alongside being Europe’s foremost technology hub. Add in the fact that there is a real shift in the world of finance from banks with technology advantages to technology companies with banking licence, means the UK really can’t underestimate the strategic importance and potential around technology and finance combined… There are 1,600 fintech firms in the UK already, estimates suggest this will more than double by 2030.
BANKING-AS-A-SERVICE GETS EMBEDDED INTO MAINSTREAM COMPANIES
“Financial services are being embedded into so many companies even into those that have nothing to do with finance”
We are seeing the emergence of core banking being able to be provided by software where technology can stitch together financial capabilities and services for companies. It means potentially in the future, any company can derive revenues even if their core product is nothing to do with finance...
THE ACCELERATED SHIFT INTO DIGITAL FINANCE
The pandemic forced all businesses and consumers to shift to ‘remote and digital’ for their financial activities. This includes an increase in retail investors going online, the likes of IG signing up 50% more customers in 2020 vs 46 years of consistent growth. Smartphones are increasingly become integral for shopping and mobile wallets. Digital payments and transfer platforms saw record new customers, more companies moved to cloud-based fintech ‘plumbing’. The shift is that modern consumers and businesses now expect convenience, speed, security and personalisation when it comes to payments and transactions.
FINANCE IS BECOMING DECENTRALISED
The likes of cryptocurrency and blockchain geared towards disrupting financial intermediaries continue to gather interest and adoption. While we are witnessing the early stages of the digital assets industry where trust is still to be earned and infrastructure is still being built, it cannot be overlooked that existing players in the ‘old world’ have shown incredible interest in digital assets. There is no doubt we will see more digital asset infrastructure developed in partnership with pioneering institutions.
Overall technology really is opening up finance- for new users, new applications, faster, easier and more personalised. The future of finance is more inclusive and open, especially to those that traditionally have not had access to such capabilities.
For more information about the London Technology Club visit the website HERE
TO READ MORE REPORTS CLICK HERE FOR FUTURE TECHNOLOGY IN NUTRITION PROPERTY PHILANTHROPY LONGEVITY WINE F1 AND ART