Antony Jenkins, former CEO of Barclays, has predicted that banks are facing their own 'Uber moment' due to the rapid growth of financial technologies (Fintech).
Just as Uber has challenged traditional taxi service companies, Fintech start-ups are also beginning to compete with the world's biggest banks.
"…Over the next 10 years we will see a number of very significant disruptions in financial services, let’s call them 'Uber moments'." Jenkins says.
What is Fintech?
Fintech companies are a new wave of start-ups in the financial sector who aim to provide services through the use of new technologies aiding with lending, payment processing and investment.
The financial crisis left a large number of highly-skilled financial services workers as 'free agents', giving them the opportunity to apply their knowledge in new innovative start-ups.
Jenkins has described the rise of fintech as an 'unstoppable force' which will revolutionise the finance sector, leading to a greater quality of service and ultimately having the potential to join big banks as household names.
As a finance provider, we believe that the future of business funding is to be found outside of the traditional channels. Businesses are beginning to gain more knowledge in respect of what types of finance are best-suited to their needs, with criteria such as availability, turnaround times, security and pricing being key considerations.
"With the rise of Fintech, businesses are becoming increasingly aware of the many alternative finance options available to them, and how they can access the required funding they need, especially those smaller or younger businesses," says LDF Managing Director, Peter Alderson.
"We know from experience that the new generation of SME business owners are more likely to look at a variety of options when dealing with the financial aspects of their business. There’s a real opportunity here for new providers to offer something different that appeals to these businesses too."
To find out more about how LDF can assist your business:
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