Market Trends of United Kingdom Fintech Industry
Rising Payments and Digital Banking in the United Kingdom
Payments and digital banking are the most-used services offered by FinTech firms, given a boost by the introduction of the Faster Payment Service. In 2022, over 90% of adults in the UK used online banking. This is up from around one-third in 2007. The use of digital banking services has increased since the start of the pandemic, with the most significant increase being for mobile banking apps. In 2022, Faster Payments broke the record for the number of payments processed in a year. Over GBP 3.2 Trillion (USD 4.03 Trillion) was transferred via Faster Payments in 2022, up from GBP 2.6 Trillion (USD 3.28 Trillion) in 2021. This was due to changes to travel habits linked to hybrid working, with many people now paying for individual journeys rather than buying a season ticket.
Where traditional banks are only available from 9 to 6, the digital banking platform is open 24*7 and 365 days for their users. The 24*7 availability of the digital platform helps the user to make transactions to anyone at any time without waiting in long queues for hours. The digital banking platform provides complete transparency in everything from transactions to account openings. The digital banking platform gives a sense of ease and no running out of time feeling. This helps the users to read each of the terms and conditions thoroughly and without missing any points. This is expected to boost the growth of this market during the forecasted period.
London Dominates the Fintech Industry in the United Kingdom
London is one of the world's top three FinTech centers, with around two-thirds of all UK FinTechs located there. London's success as a superhub is contagious. It has helped to build and nurture a halo of FinTech activity in regions such as Milton Keynes, Oxford, Brighton, Southampton, and Bournemouth in Greater London, the South, and the South East of England. A few of these places, such as Reading and Cambridge, are forming new clusters. In terms of specialization, it is strong across the board, particularly in Banking, Payments, and WealthTech.
London is ranked second as a top financial center after New York. It also serves various financial products along with the Artificial Intelligence provision, with the financial product serving the global market abundance of Fintech Products for managing loan origination, risk, and collections during these times. B2B FinTechs (e.g., RegTech, core banking software, data analytics providers), payments, Transfers P2P and other stock exchanges as well as Cryptocurrency. Also, it has boosted the Australian fintech market with various contracts and services.
