This Week in FinTech: Swiss Cheese CRMs, UK FinTech Funding, and Welcoming DORA! ??????
This week, we capture a rare reference to Swiss cheese, focus on UK dominance of FinTech funding and introduce DORA to our growing audience. Read below to dive into these stories. ??
Imagine running a wealth management firm, and someone describes your CRM as "Swiss cheese"—full of holes and gaps. ?? Ouch, right?
That’s exactly how Matthew Esler, a leading voice in Australia’s WealthTech scene, sees it. And honestly, he’s not wrong. If your CRM is riddled with gaps, you’re missing crucial details that could make or break the personalized advice you give to clients.
Personalization is the cornerstone of wealth management, and without the full picture, you're flying blind. It’s like trying to solve a puzzle with half the pieces missing—good luck with that! ??
Your CRM is the backbone of your business. It’s supposed to capture all the data you need, but if it’s full of holes and data is leaking, your competitors are already a step ahead. Clients expect regular updates, insights, and tailored reports. If you’re not delivering, they’ll find someone who will.
And if you think you can just fill in the blanks yourself, think again. With tighter regulations, every piece of advice is under scrutiny. One wrong guess, and you could face hefty fines, bad press, or worse.
As WealthTech continues to evolve, the pressure is on to keep up. If your CRM is outdated and your data incomplete, you risk being left behind. So, unless you want your firm to be the target of the Swiss cheese joke, it’s time to plug those holes and get your CRM in top shape. Your clients—and your future success—will thank you!
Besides, who wants to explain to a client that their financial future is being managed by something that resembles a deli counter favorite? It’s time to fill those holes, get serious, and invest in a CRM upgrade—before it’s too late!
If you’re even remotely interested in FinTech, here’s a headline that won’t shock you: the UK is absolutely crushing it in the funding game, leaving its European neighbors in the dust. Actually, scratch that—it’s on a completely different planet compared to the rest of Europe, the Middle East, and Africa (EMEA). ??
So, who’s ready for some jaw-dropping numbers? UK FinTech investment in the first half of 2024 didn’t just increase—it exploded, almost tripling to a whopping ￡5.7 billion! That’s a massive leap from the ￡2 billion seen during the same period in 2023. And to really put that in perspective, the rest of the EMEA region (minus the UK) only managed to scrape together ￡3.3 billion. Yep, you read that right— the UK snagged nearly double the funding of all its EMEA counterparts combined! ??
So, if you’re part of the UK FinTech scene, you might be tempted to kick back, relax, and bask in the glory. But hold on a second—there’s more to the story.
A closer look shows that the UK’s numbers were supercharged by just three major deals this year:
?? The ￡3.15 billion buyout of IRIS Software
?? Abound’s massive ￡800 million funding round?
?? Monzo’s impressive ￡490 million raise for expansion?
But here’s the kicker—while those mega-deals made headlines, the actual number of UK FinTech deals took a nosedive, dropping from 284 to 198 in the first half of 2024. ??
As FinTech funding fights to regain the dizzying heights of 2021, there’s still a silver lining on the horizon. Experts predict that a wave of pent-up demand is about to crash over the sector in late 2024 and 2025, all thanks to falling interest rates. ???
June’s economic data painted a bleak picture, with the UK economy hitting a standstill, political uncertainty looming, and a general election on the horizon. Combine that with sky-high finance costs, and it’s no wonder deal-making slowed down. But now? The tide is turning. ??
Valuations are starting to recover, funds are being earmarked for investment, and while start-ups will always have their moment, the spotlight is shifting back to more established companies. Investors are eager to spark new waves of investment, focusing on boosting existing firms rather than chasing the next big thing.
So, while the sharks are circling, hoping to snatch the crown, the UK FinTech sector remains in a prime position to dominate Europe and beyond. The US might be leading the way, but the UK is on a charge in second place, keeping the challengers at bay and leaving third-placed Singapore in its wake.
领英推荐
We’re barely into the third quarter of 2024, and the big wealth industry topics for the rest of 2024 have already made themselves known: sustainability, digital innovation, and regulatory shake-ups.
Following last week’s deep dive into the new EU AI Act, let’s introduce you to DORA. No, not the Explorer (one for the younger parents ??)—we’re talking about the Digital Operational Resilience Act. ???
So, what exactly is DORA? It’s a mouthful, but essentially, it’s a comprehensive Information and Communication Technology (ICT) risk management framework designed specifically for the EU financial sector.
But what does DORA mean for wealth management, and how might WealthTech swoop in to save the day?
Well, as you might have guessed, tucked away in the fine print, DORA is like a virtual police force, keeping tabs on the risks associated with climate change and how they could impact client and investment portfolios. ??
And here’s the good news: DORA isn’t just some lone ranger. It’s gaining serious backing from the Bank of England, the European Central Bank, and a growing band of regulators across Europe. What are they up to?
For starters, the European banking community is undergoing climate stress tests to see how resilient they are to environmental risks. Is the investment world scrambling to catch up? Not at all! In fact, this is a golden opportunity for asset managers to step up and show off their strategies for tackling climate change. These strategies include:
?? Enhanced investment decision-making?
?? Promotion of sustainable financial products?
?? Aligning with regulatory compliance?
And yes, there’s a financial angle, because isn’t there always?
?? Client satisfaction?
?? Client retention?
As we head into the second half of 2024, the challenges are clear: wealth managers are taking a proactive approach, and regulators are hot on their heels.?
It’s the perfect setup for the WealthTech sector to shine—riding in like a knight in shining armor, ready to pull some of Europe’s slow-moving financial giants out of the fast-approaching regulatory fire. ??
And there is more…….
You’ve probably seen the headlines already, but just in case you missed it: the FCA has released a new set of ESG labels for fund managers and authorized firms marketing sustainable investment products. ???
The financial services industry is definitely evolving, and it promises to be an exciting and unpredictable journey. ??
It’s another mixed bag this week, FinTech, RegTech and WealthTech - which of these insights caught your eye? Don't miss out on our Espresso Break! ?
?? aixigo's Knowledge Hub is a great resource for anyone looking to stay ahead of the curve. Get one of our white papers for free using this link !
? Don't miss out on our "Espresso Break"
?? Become a part of team aixigo !