The UK FinTech sector is set for a significant technological revolution in 2024, an event Demica describes as a tech ‘Big Bang 2.0’.
This transformation is driven by the need to replace outdated banking technology and the strategic shift of banks towards partnering with FinTech companies instead of developing in-house solutions. This trend is especially evident in the rapidly growing $1.2 trillion supply chain finance market.
Government-backed initiatives such as open banking and the EU’s Framework for Financial Data Access are also contributing to this shift, promoting digital transformation and fostering innovative services through FinTech partnerships. The demand for more dynamic and efficient financial services is accelerating these changes, leading to swift collaborations among diverse organisations.
One notable example is Lloyds Bank, which has significantly improved efficiency and customer satisfaction by implementing Demica’s supply chain finance platform, reducing the time for supplier programme joining from 45 days to just one. Additionally, Mastercard’s partnership with Demica highlights the expansive potential of these collaborations, extending service offerings and enhancing access to working capital for businesses.
Demica highlighted this transformation is not limited to transactional banking but will encompass various financial domains including personal credit, business lending, insurance, and even sectors like telecommunications and utilities. This comprehensive transformation signifies a departure from traditional, lifelong banking relationships towards a more interconnected and agile financial landscape, prioritising customer experience and value.
Maurice Benisty, Chief Commercial Officer at Demica, said, “While the promise of a fintech revolution has been talked about for some time, a confluence of factors is driving an unprecedented pace of change right now.”
Keep up with all the latest FinTech news here.
Copyright © 2024 FinTech Global
