The UK government claims to recognise financial technology (fintech) as playing a crucial role in increasing competition in financial services but new research reveals our biggest banks are controlling things behind the scenes.
Rather than increasing competition, the fintech industry so far has been helping the banks fend off competition.
With such little progress so far, Starling Bank’s Anne Boden (CEO) has launched an ongoing investigation into how the fintech industry can get back on track, shifting away from propping up the banks and supporting the customer revolution.
Anne Boden said:
“Finance has lost touch with real people. Fintech was meant to solve this problem. However, technology for the sake of technology helps no one. Technology needs to fit the lives of people not vice versa. Yet with such a tiny percentage of investment actually helping people to manage their money better, it becomes apparent fintech has lost sight of its own goals. The time has come to change the course of the financial revolution.
“Today, I’m launching an ongoing investigation into how we can bring the voice of frustrated customers back into the board room. Huge opportunity lies ahead for fintech in 2017. But there are challenges too. The only way to win is to listen better to customers. We invite everyone to join the conversation.”
Conducted by independent research firm, Explain The Market, the inaugural Starling report examines the gap between the rhetoric and reality of the so-called banking revolution. The study combined an analysis of over a thousand investment deals since 2014, interviews with 100 frustrated fintech customers, and insights into other market research on fintech, customer trends and banking developments.
Guy Shone said:
“The government has done much to help create a positive regulatory environment for technology startups and says fintech is integral to their strategy for making financial services more competitive. But on closer inspection most of this so-called new competition helps our biggest banks rather than competes against them. Billions in new investment is still controlled by the groups who for decades have been part of the problem. A real revolution needs to prioritise genuine disrupters and those brands who really put customers first.”