2024: The Year of the FinTech Big Bang
In a recent article, Demica has predicted that 2024 will be a pivotal year for the UK FinTech sector, marking a significant technological revolution they refer to as ‘tech Big Bang 2.0’, according to Fintech Global News. This transformation is being spurred by the imperative to replace outdated banking technology and the strategic shift of traditional banks towards forging partnerships with FinTech companies rather than developing in-house solutions. A notable arena for this trend is the rapidly expanding $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. They are actively promoting digital transformation and fostering innovative services through FinTech collaborations. The growing demand for more dynamic and efficient financial services is accelerating these changes, resulting in rapid collaborations between diverse organizations.
One prominent example is Lloyds Bank, which has significantly enhanced its efficiency and customer satisfaction by implementing Demica’s supply chain finance platform. This move has reduced the time required for suppliers to join their program from a cumbersome 45 days to a mere one. Additionally, the partnership between Mastercard and Demica highlights the immense potential of these collaborations, expanding service offerings and improving access to working capital for businesses.
Demica has emphasized that this transformation will not be limited to transactional banking alone. It is set to encompass various financial domains, including personal credit, business lending, insurance, and even sectors such as telecommunications and utilities. This all-encompassing transformation signifies a shift away from traditional lifelong banking relationships towards a more interconnected and agile financial landscape that prioritizes customer experience and value.
Maurice Benisty, the Chief Commercial Officer at Demica, has commented on this development, saying, «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.»
This impending FinTech revolution promises to reshape the financial industry in the UK and beyond. With the convergence of technological advancements, strategic partnerships, and regulatory support, 2024 appears poised to be a landmark year for the FinTech sector, propelling it into an era of unprecedented innovation and growth.