UK named a FinTech world leader

The UK, US and China are the most important countries in the world for growth in financial technology over the next two years, research from PwC has found.

 

 

UK named a FinTech world leader

After surveying 500 financial services and media and telecoms firms, the researchers found that nearly four in 10 UK companies now use robotics processing automation (RPA).

This is significantly more than the almost three in 10 firms implementing RPA globally, with Britain found to be leading the world for its growing use of ‘robo-advisers’.

However, the UK’s expansion of robo-advisers is offset by consumers demanding human interaction for priority services, according to PricewaterhouseCoopers (PwC).

“We are seeing a growing shift towards hybrid human and robo-advice strategies, with even some of the pure-play robo-advisers hiring humans,” PwC partner, Rav Hayer, said.

“Most consumers want reassurance of human oversight. Firms face a dilemma on how to balance the need for human interaction with the digitally enhanced offerings customers also expect.”

The survey also found that 49% of UK firms have now incorporated emerging technology into financial payments, compared with 56% globally.

But Britain is falling behind other countries when using new technologies across asset management, funds transfer, mortgage loans and traditional deposits.

UK firms are also more likely to have no plans to pursue, blockchain, 5G and big data over the next two years.

Just 29% are implementing big data, compared with 46% internationally, and only 15% are harnessing the internet of things (IoT), compared to the global average of 31%.

“The focus to date has been on incorporating emerging tech across payments, personal finance and insurance where 49%, 37% and 32% of respondents reporting emerging tech as being incorporated,” Hayer continued.

“Those with the greatest priority in the next two years are asset and wealth management, while there appears to be less appetite to incorporate emerging tech into student loans, traditional deposits, and fund transfers.”

 

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