Fintech's Next Big Play: Levelling the Playing Field

The UK's fintech scene is buzzing. We've become a global leader, with challenger banks like Monzo and Starling disrupting traditional banking, Open Banking revolutionising data sharing, and contactless payments becoming second nature. These innovations have transformed how we interact with money, making it easier, faster, and more convenient.

But this success story has a hidden chapter: millions of people are still struggling to keep up. There is widening chasm between the financially empowered and the financially excluded.

A staggering ￡63 billion is lost annually due to the digital skills gap, 73% of adults in the UK fall below the financial literacy benchmark, and a shocking 20.2 million adults are now considered financially underserved. These figures are a reminder that technological advancement alone cannot guarantee financial inclusion.

Fintech, however, has the potential to be the game-changer: to break down the barriers that have long excluded millions from the economic mainstream.

Imagine a future where every individual, regardless of their background or financial literacy, can confidently navigate the digital financial landscape. Where school children grasp the fundamentals of money management as easily as they learn their times tables, and where adults have access to affordable, engaging resources that empower them to make informed financial decisions. Imagine a workforce equipped with the digital skills needed to thrive in the 21st-century economy, from basic online banking to the complexities of cybersecurity.

This is the future fintech can create.

It's a future where fintech companies collaborate with educational institutions to develop innovative, accessible financial education programs that reach every corner of society. A future where Open Finance and Open Data empower consumers, giving them greater control over their financial lives and fostering a more competitive and transparent financial ecosystem. A future where everyone has the opportunity to build a secure financial future, regardless of their starting point.

Realising this vision requires a multi-layered approach. We need to invest in education and skills development, making financial literacy a priority from primary school onwards and ensuring that upskilling and retraining opportunities are available to the existing workforce. We need to champion policies that promote financial inclusion, such as Open Banking and Open Finance, while ensuring robust consumer protection. And we need to foster an environment where innovation thrives, attracting top talent from around the world and creating a diverse and vibrant fintech ecosystem.

The UK has a unique opportunity to lead this transformation. We have a thriving fintech sector, a world-class education system, and a history of regulatory innovation. By leveraging these strengths, we can create a model for the world, demonstrating how technology can be harnessed to create a more equitable and prosperous society.

The Kalifa Review predicts that by 2030, fintech could contribute a remarkable ￡13.7 billion to the UK economy, with 70% of this value coming from job creation. But this potential can only be realised if we address the skills shortage and ensure that the benefits of fintech are shared by all.

Fintech's next big play is not just about developing cutting-edge technology. It's about empowering people, building a more inclusive financial system, and creating a future where everyone has the opportunity to thrive.

The challenge is great, but the rewards are even greater.

Sources

普华永道 (2022). 'Overlooked and financially under-served: Sizing the financially under-served population in the UK'. https://www.pwc.co.uk/industries/financial-services/insights/overlooked-and-financially-underserved.html

UK government (n.d.). 'Kalifa Review of UK Fintech'. https://assets.publishing.service.gov.uk/media/607979c7d3bf7f400f5b3c65/KalifaReviewofUKFintech01.pdf

UK Parliament (2024). 'Digital skills and careers'. https://commonslibrary.parliament.uk/research-briefings/cdp-2024-0073/

Wealthify (2023). 'What is the UK’s level of financial knowledge – and what impact is this having on our money?' https://www.wealthify.com/blog/what-is-the-uk-s-level-of-financial-knowledge