Janine Hirt
CEO, Innovate Finance
Since the 2008 financial crisis, our financial systems have been disrupted and transformed by fintech.
Over the past decade, financial services have been transformed as fintech companies — new entrants with technology at their core — have driven a new generation of more transparent, open and inclusive offerings. These innovative fintech companies have matured and become integral players in the UK financial ecosystem, with $1.9bn of investment in 2022 alone.
Today, 80% of UK adults use fintech tools regularly, such as scanning their phones to pay for a bus journey.
Easier everyday management
This year, 2 million households will have missed a bill payment in the struggle to keep pace with the soaring prices, according to the consumer group ‘Which?’. Providing consumers with tangible solutions to help them in their everyday lives is at the core of many fintech companies’ propositions. Fintech enables people to better understand, grow and manage their money — often in an easier, cheaper and more transparent way.
Today, 80% of UK adults use fintech tools regularly, such as scanning their phones to pay for a bus journey.
Fintech can help consumers gain a deeper understanding of their income and spending; prepare for possible economic scenarios such as price increases, energy costs and interest rates fluctuation; and facilitate the process of accessing finance.
Making life easier: current and future solutions
Examples of fintech companies supporting the end consumer are many, varied and growing. Innovate Finance members Zopa and Clearpay have recently launched the ‘FinTech Pledge 2025’ campaign to improve the financial lives of 10 million people by 2025. Other examples include the likes of Minna Technologies, which helps consumers monitor their subscription spending; Snoop, which offers a free budgeting app; and TotallyMoney, which allows people to better understand and improve their credit scores.
We can also expect to see new solutions — such as digital financial passports — enter the mainstream in the near future. These technologies will all play a core role in reducing financial exclusion and making payments more secure.
As we face a cost of living crisis that’s set to be the worst we have seen since records began, it’s more important than ever that we embrace the power of fintech to create a more democratic, inclusive and accessible financial services system that works better for everyone.