These startups prioritise agility , customer experience and accessibility , often operating with lower overheads and embracing data-driven decision-making . As a result , they are swiftly gaining market share and reshaping the industry , compelling traditional banks to adapt or risk obsolescence . This introduction highlights the transformative impact of FinTech startups and sets the stage for a deeper exploration of their disruptive influence in financial services .
Jorge Lesmes , Banking Director at NTT DATA UK & I :
“ With Singapore , Turkey , Spain and China – to name just a few – already exploring the use of central bank digital currencies ( CBDCs ), it is unsurprising to see the Bank of England announce that it is exploring the benefits of digital currencies again . The UK has had a CBDC taskforce in place since April 2021 and as banks and government bodies look to adapt to an increasingly digital economy , CBDCs offer an opportunity to leverage the benefits of crypto with less inherent risk .
FinTech startups are revolutionising the financial landscape by leveraging technology to challenge traditional banking and financial service providers . Through innovation in areas such as digital payments , lending , wealth management and Blockchain technology , they are offering convenient , cost-effective and customer-centric solutions .
In this month ’ s Editor ’ s Question , we ask : How are FinTech startups disrupting traditional banking and financial services ?
HOW ARE FINTECH STARTUPS DISRUPTING TRADITIONAL BANKING AND FINANCIAL SERVICES ?
“ Dubbed ‘ Britcoin ’, a new digital pound could be held in a digital wallet on their smartphone without the need for an online banking app , allowing them to use the digital currency in the same way as cash . There are projects that are supporting the development of a British CBDC too – for example , ongoing research between UCL , NTT DATA and Petras is looking to better understand the devices and infrastructure required to maintain a CBDC . Either way , it is good to see the UK approach digital currencies with the right caution and it will be important for the government to demonstrate how easy it will be to use a digital currency ahead of 2030 , in order to dispel any fears and encourage widespread adoption , once the Bank of England formally introduces a digital currency for the UK .”
Jorge Lesmes , Banking Director at NTT DATA UK & I
E D I T O R ’ S Q U E S T I O N
“ The key hurdle for the Bank of England to overcome is gaining public acceptance of a new digital currency as some members of the public have understandable fears over cash being phased out entirely . However , the current plans are to maintain digital and physical currencies in tandem . Furthermore , for banking customers , digital currencies could offer them increased freedom in the way they use their money .
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