Tag: fintech

Fintech awareness increasing

fintech_shutterstock_502994557Fintech awareness is growing among UK businesses, according to a survey by business finance company MarketInvoice.

The survey found that 77 percent of UK businesses are aware of fintech products and services and 65 percent have adopted at least one fintech application, with 19 percent taking on four.

Those who adopt it claim to be saving more than £5,500 a year as a result of using fintech products and services and 23 percent of them are using fintech products and services for banking transactions, while 16 percent are using it for foreign exchange services.

Meanwhile, 24 percent reported using cloud-based software for their accountancy functions and 32 percent used online lenders for business loans or invoice finance.

MarketInvoice claimed the £4.6 billion saving for US businesses is based on FSB statistics which show there are 5.5 million businesses in the UK, of which 1.3 million are employing businesses. The £4.6bn is achieved by multiplying 65 percent of 1.3 million businesses by £5,500 – the average annual savings by adopting fintech services.

Anil Stocker, CEO and co-founder of MarketInvoice said that the expansion of tech-driven digital services has been remarkable over the past five years.

“We know that consumers have been adopting tech applications into all parts of their lives, but our research shows that UK businesses are now also becoming tech-savvy.”

Stocker said fintech applications are revolutionising the way business is being done, from how employees report their expenses to the way businesses report their financial performance.

 

UK FinTech founder sees sixth year of growth

rmg-Location_The-City_1-hrOne of the founders of UK Fintech, Cashplus, has announced a sixth consecutive year of profitable growth.

With a 28 percent uplift in revenues and 36 percent increase in profit, the company has reported £5.6 million EBITDA profit for the year ended March 2017.

With turnover increasing threefold in the past six years, the latest set of full year results to year ended March 2017 Cashplus has become one of the few Fintech businesses with fully developed payments and technology expertise.

The company says that it consistently demonstrates it is ahead of the Fintech curve, not only in generating healthy profits in an emerging industry, but earlier this year, the company announced the launch of its API, well ahead of the PSD2 deadline.

Set up over a decade ago to break down inherent barriers in banking, Cashplus provides simple, secure, straightforward and efficient services to customers who continue to be overlooked by the high street banks- Cashplus has now attracted over 1.6 million UK customers to its accounts.

The company continues to see a huge demand for its services with a 93 percent year-on-year growth in demand for capital from SME businesses alone since October 2015.

With London regarded as a world-renowned Fintech hub, CEO Rich Wagner said: “We pride ourselves on leading the field in Fintech capabilities, and as a pathfinder in the sector, the Cashplus proposition remains simple: ‘speed and ease of use for customers’. We anticipate that Cashplus, particularly in the SME space, with our customer-centric approach will see further growth in the coming 12 months.”

Broadridge strikes deal with Spence Johnson

1471411231Fintech outfit Broadridge Financial Solutions has announced an agreement with global institutional data and intelligence collector Spence Johnson.

The big idea is to bring together retail and institutional data, benchmarking and analytics. The joint capabilities will generate a unique global view of the global asset management market.

This strategic alliance uses Broadridge’s Global Market Intelligence and Spence Johnson’s institutional Money in Motion dataset that offers detailed analytics on institutional assets, flows and sales, tracking over $7 trillion in institutional flow.

Dan Cwenar, president of Broadridge’s data and analytics business said that: “this alliance with Spence Johnson furthers Broadridge’s commitment to helping asset managers identify growth opportunities – providing them with broad data and analytics for both retail and institutional channels globally.”

Nigel Birch, managing director, Spence Johnsons said his outfit was excited to form an alliance with Broadridge and continue our mission to put data and intelligence at the heart of successful asset management businesses.

Fintech could poach business from bankers


Bank CrisisLarge financial institutions
across the world could lose 24 percent of their revenues to financial technology companies over the next three to five years.

Beancounters at PriceWaterhouseCoopers have added up some numbers and divided by their collective shoe size and decided that the finance industry is about to get a big kicking from FinTech outfits.

Of the more than 1300 financial industry executives polled by the professional services firm, 88 percent said they feared their business was at risk to standalone financial technology companies in areas such as payments, money transfers and personal finance, the study found.

PwC’s annual Global FinTech Report said that consumer services such as personal loans, were seen as most at risk.

The new companies take advantage of new technologies to offer better digital services to customers, in areas ranging from financial advice to life insurance.

To counter the threat, financial institutions expected to increase their collaboration with fintech companies, with 82 percent of respondents saying partnerships with tech-savvy firms would increase over the next three to five years, the PwC report found.

To improve their digital offering and remain competitive, large firms have been looking to work more closely with young technology companies through a number of initiatives such as corporate venture arms and innovation centers.

In his annual shareholder letter published on Tuesday, JPMorgan Chase & Co chief executive Jamie Dimon highlighted some of the bank’s most recent collaborations with fintech companies in areas including mortgages, small business lending and payments.

While collaboration is on the rise, entrepreneurs and executives often note that several hurdles are hindering more effective cooperation. IT security, regulatory uncertainty and differences in management and culture, were cited by respondents to PwC’s report as major challenges hindering partnerships.

While adoption of the nascent technology is not expected to happen quickly, the survey found 55 percent  of respondents planned to adopt it by next year, and 77 percent by 2020.