Published by Financial IT
he deregulation of UK financial markets, thanks to the ‘Big Bang’ 30 years ago, was a momentous occasion and arguably the most important moment in helping the City Of London to become Europe’s number one destination for fintech.”
The adoption of what was then cutting-edge technology, like electronic trading, brought the financial services sector in the UK kicking and screaming into the twenty-first century. Its effect is clear, currently the industry employs over 7% of the UK workforce, producing nearly 12% of total economic output, while contributing £66 billion in taxes and is one of the rare British success stories abroad, generating a trade surplus of £72 billion.
However, technology is once again revolutionising finance, and in the post-Brexit world, we’re on the cusp of the next Big Bang, this time specifically in the payments sector. It is one of the last areas of finance that traditional banks have a stranglehold of, possessing a 95% share of the business payments market. They place unnecessary middlemen at the centre of these transactions to bolster prices and effectively overcharge UK businesses…