As banks and financial services firms in the
Almost half (46 per cent) of the UK’s financial services firms are targeting acquisitions and partnerships with fintechs in the next year, in a bid to to access emerging technologies and boost their product offerings, as consumer needs evolve post-pandemic.
That’s up from 32 per cent last year, according to the new data from
Recent M&A deals include Natwest’s acquisition of children’s pocket money app RoosterMoney and Royal London’s acquisition of robo-adviser Wealth Wizards.
Of those firms planning fintech M&A, developing new products and services was the biggest driver of their plans, with 66 per cent citing it as a top priority. Improving client experiences followed at 53 per cent, followed by driving growth at 49 per cent.
“The
“They are at the forefront of innovation within financial services and, by partnering with them, the UK’s largest firms are showing they are committed to developing new products and services to meet changing client needs through collaboration.”
Beyond M&A, three quarters (77 per cent) of the
More firms expect to grow investment in their technology systems and core platforms over the next 12 months (77 per cent) compared to last year (62 per cent).
And it’s clear they see tech investment as a source of similar benefits, with the majority (71 per cent) planning investments to improve client experience, drive growth (60 per cent) and boost productivity (59 per cent).
“The pandemic is not over, but firms are now in a position to focus the lion’s share of their investment on growth and supporting clients,” said
“Innovation is the bedrock of
It’s a theme that spreads further than
There’s no indication of corporate venture capital slowing down across
One of those most notable moves was Goldman’s £50m investment in the UK’s Starling bank in April this year.
And many banks have launched dedicated funds for investing in fintech startups. Barclays has been prolific in the
As a sector, fintech is driving the UK as a leading unicorn hub, and accounted for 11 of the 20 UK tech companies that reached a billion-dollar valuation in H1 2021.
The post A slice of the pie:
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