UK banking and financial services firms are actively responding to new fintech developments, with many planning to launch new offerings in 2022, new research from Yobota has revealed.
The London-based technology company commissioned an independent survey among 261 senior decision-makers within banks and financial services companies. It showed that the majority (60%) have launched one or more new digital products over the past 12 months in response to increased demand for fintech from their customers.
When asked about recent trends within the fintech market, more than half (55%) agreed that embedded finance was the most significant in terms of elevating the customer experience. Even greater numbers hold
a favourable view of the progress being made on the open banking front, with 69% saying it has been successful in empowering innovation across the financial services sector.
Looking ahead, 44% of banking and finance firms plan to invest in buy-now, pay-later, or other embedded finance solutions in 2022. The vast majority (63%) intend to leverage open banking opportunities.
Yobota’s research also showed that sustainability and financial inclusion are high on the agenda. More than two-thirds (69%) of respondents say their company plans to invest in new eco-conscious tools, while 64% will invest in products that drive financial inclusion. Elsewhere, three in five (58%) plan to invest in BaaS solutions.
To support these developments, companies want to see better regulation – 65% of banking and financial services firms said that UK regulators are not responding quickly enough to new trends, thereby hindering innovation within the sector. Further, 77% said the growing popularity of new fintech offerings must be supported with better regulation and compliance measures.
Ammar Akhtar, CEO and co-founder of Yobota, said: “In the past, banks and financial services firms have been criticised for their slow adoption of digital trends, but our research shows a clear shift in mindset.
“The findings suggest companies are making strides in the right direction, embracing innovation and progressive ways of thinking. Whether it’s the result of pressure from customers, or the greater ease of entry for new competitors, we’ve seen many banks and finance firms embrace new tech this year, and even more plan to do so in the coming 12 months. It’s great to see these fintech trends driving innovation and adoption across the industry, and offering the customer an ever better range of options to make the most of their money.”