Having emerged as the key growth driver of the British financial sector, fintech had attracted billions of dollars in investment & created some 80,000 jobs in Great Britain before the outbreak of the coronavirus pandemic. In the months that followed, fintech has demonstrated its remarkable resilience, helping businesses come up with customized products & letting their customers easily deal with the challenges created by the COVID-19 pandemic.
If you’re now contemplating embarking on fintech activities in the UK, you should be able to quickly identify & take advantage of the opportunities that the coronavirus pandemic presents to fintech sector participants. You should also be able to instantly recognize & deal with the formidable challenges you’re likely to encounter in your future economic endeavors.
So, let’s have a look at some of them.
Great Britain: Fintech Trends
At the moment, the fintech sector in Great Britain is facing three big challenges.
- Implementing Agile Business Model
The coronavirus pandemic has greatly accelerated the use of video conferencing & telecommutingю It has also led to monetary transactions being increasingly replaced with Internet banking. Therefore, individuals seeking to register a fintech startup in Great Britain need to keep in mind that fintech should be at the core of their future activities. Given that digital banking is rapidly evolving, fintech services providers should be able to quickly come up with innovative solutions & implement them in their activities.
As far as fintech regulation in Great Britain is concerned, the UK government is now showing more leniency toward fintech sector participants, letting them focus more on the protection of their customers.
- Maintaining Access to Reliable Sources of Financing
Before the outbreak of the coronavirus pandemic, quite a few of UK-registered fintech companies relied on upfront investment. However, the economic downturn triggered by the COVID-19 pandemic has affected many projects they have been implementing or considered implementing. And even though the UK government has announced measures to support businesses during the quarantine, fintech startups will still need to secure reliable sources of long-term financing in an environment where lenders & investors are seeking to minimize their risks.
- Competition from Trusted Financial Services Providers
The economic meltdown triggered by the coronavirus pandemic has the potential of creating a situation in which customers will choose to use the services of larger & more trusted financial services providers (e.g. large banks). Therefore, those planning on registering a fintech company in the UK should demonstrate their reliability to their customers.
Great Britain has long enjoyed a reputation of an undisputed leader in the global fintech market. Therefore, registering a fintech company in England is a rather profitable & promising undertaking in 2020.
Want to know more about fintech regulation in the UK? Why not let IQ Decision UK help you out? Our legal advisors will be happy to give you a hand with any legal issues you’re facing.