For several years, the UK has taken the lead as one of the world’s driving fintech spaces, particularly due to its financial services and technology, which has helped it become a prime innovator and encourager of start-ups.

The UK’s revolutionary technologies have allowed financial transactions, be that business-related or personal, to be conducted securely and remotely to guard customers’ sensitive data.

Additionally, initiatives and regulations are forming the basis for a competitive, modern and secure financial services ecosystem. Because of this achievement, the UK will likely remain in this position of a leading space for fintech.

So what has the UK done to revolutionise banking and data protection?

Post-Brexit and Open Banking

The Financial Conduct Authority of the UK announced on November 3, 2020, that it “will permit UK-based third-party providers (TPPs) to use an alternative to eIDAS certificates to access customer account information from account providers, or initiate payments, after Brexit.” It advises firms to “act to ensure they can continue to provide open banking services.”

This action is following on from the announcement of the European Banking Authority (EBA), in July 2020, which stated that this access would be revoked on 31 December 2020, when the Brexit transition period ends.

Innovative privacy and protection methods 

The UK’s viewpoint on ordinances, such as more secure data privacy and protection methods, has caused many global markers to mirror. From these new regulations, the UK has formed a strong financial services ecosystem and has centred itself in this sector worldwide.

Since the introduction of the General Data Protection Regulation (GDPR) and the second Payment Service Directive (PSD2), they have been replicated globally.

GDPR will remain under provision post-Brexit as the UK Government established the Data Protection, Privacy and Electronic Communications (Amendments etc) (EU Exit) Regulations 2019.

Technology is at the forefront

The UK’s development of digital-only challenger banks over the years has initiated numerous key changes from the traditional banking equivalents and financial regulators.

As a result of the ongoing coronavirus pandemic and the subsequent economic climate, many consumers are carrying and using less cash, hence digital ways of payment have become more popular.

Therefore, the implementation of digital technologies and legislation, along with the competitiveness of the financial services market has increased.

Additionally, consumers are becoming increasingly accustomed to digital channels, which could be why they require a smooth experience with payment.

To find out how our team of innovation funding specialists can help you, contact us today.

Posted in Blog, FinTech.