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Innovate Finance is delighted to be supporting this strategic review of the UK FinTech sector. Over the last few months we have seen exponential growth and change in the adoption of digital financial services. We are at a pivotal moment with regards to our economy and now have a unique opportunity to reflect on the success of UK FinTech. We have the best in class in terms of innovation and should consider what more we can do to fully embed it within our wider financial services. We look forward to working with Ron Kalifa and stakeholders across the ecosystem to develop a shared blueprint for growth of the UK’s financial services sector that has technological innovation at its core

The financial services industry today is characterized by change. Investor interest and capital is pouring into fintech companies – digital banks, insurtechs, wealthtechs, proptechs and every option in between are shifting how financial services are created, offered and evaluated. New changes, new challengesThis shift has spurred many traditional financial institutions to take action. Yet, changes aren’t always straightforward. Financial institutions know they need to embrace innovation, and they also have to find better ways to understand and respond to their customers.At the same time, the shift has put a spotlight on a new area of opportunity for big tech companies like Alibaba, Apple, Google, Tencent and others. These companies have incredible reach, deep roots into their customers’ lives, and robust customer data. Big techs are also constantly looking for ways to provide their customers with more value, to enhance customer loyalty by providing a more integrated ecosystem. Most already offer payments solutions, so extending their offerings to include financial products makes sense. However, there are no strong indicators that the big tech companies want to become banks. The regulatory burden is so far considered too high for their appetite1. Forging strategic alliancesBig tech and financial institutions are already investing in fintechs to help advance their strategic goals. For example, Tencent led a $35 million investment in open banking focused TrueLayer in the UK this year2.What they are realizing that partnerships don’t have to be limited to start-ups – working together with established institutions can create value. Over the past 6 months, there have been a number of strategic business relationships announced, such as Google’s partnership with Citibank and Stanford Federal Credit Union, to offer smart checking accounts3 and Apple’s announcement of a partnership with Goldman Sachs to offer the Apple Card credit card4. These will likely only be the beginning. 

The company will continue to develop and expand its offering to provide a range of product development and payments services.Kobus Ehlers, Firepay CEO, said: “Our team is looking forward to building out our payments platform to solve the real-world payments problems we have always focused on, and to provide customers with the best experience possible. We’re excited to work with Standard Bank in our mission to achieve this both in South Africa and across the continent.”

“We are excited about working more closely with the Firepay team and think that there is an excellent strategic fit between their capabilities and Standard Bank’s vision for a truly universal bank, both in South Africa and throughout the African continent,” said Wendy Pienaar, SBSA Head of Emerging Payments.“Firepay’s experienced team and industry know-how will be used to bolster Standard Bank’s emerging payments strategy,” she added.In addition to SnapScan, the Firepay team’s technology platform already enables payments for several clients, including WeChat and Masterpass.

“We are excited about working more closely with the Firepay team and think that there is an excellent strategic fit between their capabilities and Standard Bank’s vision for a truly universal bank, both in South Africa and throughout the African continent,” said Wendy Pienaar, SBSA Head of Emerging Payments.“Firepay’s experienced team and industry know-how will be used to bolster Standard Bank’s emerging payments strategy,” she added.In addition to SnapScan, the Firepay team’s technology platform already enables payments for several clients, including WeChat and Masterpass.

MTN embarks on a journey to lead and deliver to its customers a bold new digital world, by transforming itself from being a traditional Communications Service Provider to a Digital Services Provider.

Visa and Fawry sign strategic partnership to accelerate digital payments acceptance

One of the key solutions that the partnership aims to address is the need to enable a digital ecosystem that easily supports the needs of consumers and merchants. Through Visa Direct’s peer to peer transfer and low cost QR solutions, millions of customers – regardless of who they bank with – would be able to make peer to peer and business to business transactions easily and securely so they can move money in real time.

Due to the ubiquitous nature of information on the Internet, clients are more informed about and resultantly more demanding of personalised banking solutions. This is especially prevalent among younger consumers who do not know a world without the Internet and smart devices. The millennials (those born between 1980 and 2000) in particular exhibit dramatically different buying patterns and consumption expectations than older generations such as the baby boomers (KPMG 2017).

The FinTech revolution captures the simultaneous attack of a large number of technologies, notably mobile telephones and blockchain, which are ushering in efficiency or outreach to multiple niche markets. The use of mobile telephone technology has expanded Internet reach to the excluded, created possibilities for business where banks were not historically present and is potentially disruptive.

TPAY MOBILE makes it easy for digital service providers to access over 600 million customers and accept payments across MEA and Turkey. Through one simple API integration, TPAY MOBILE’s full service mobile payment platform enables rapid business growth and drives financial inclusion.

THESTRATEGICFINTECHFRAMEWORK Theconceptofthe StrategicFintech frameworkisoneofmanagedinnovation.Itisabusinessschoolledapproachto managingchange.Itcombinestheecosystem,unitingchallengersandincumbents,governmentanduniversities.The alignmentofinterestsisdoneattheplatformle v el,allowingforcompetitionbutonale v elpla yground.Itbenefits fromindustryinsightandanunderstandingofemergingtrendsandconsumerbehavior .Atitscoreisatechnologyand competencefocus.Itisawa yofapproaching,addressingandactioninginno vativ echange. Havingastrategyfocuson Fintech innovation,beitacorporateornationallevel,isacommitmenttoasetof coherent,mutuallyreinforcingpracticesaimedatdeliveringadigital financialservice.Thisconeptiscapturedby Gomberetal(2018).Theideabehind StrategicFintech istopromotealignmentwithinanorganization,clarifyobjectives andpriorities,andhelpfocuscorpor atebeha viorandproductinno vation.Theo v er allstr ategyiscustomerfocused,but supportedb yboththebackandfrontoffice. Thecoretechnologiesbehind StrategicFintech arecentraltounderstandinghowcollaborationbenefitsthemajority ofparticipants.T akeforexampletheroleofArtificialIntelligencein Fintech,theabilityofadigitalcomputertoperform financialtasks.Thisresultsinblackbo xoutcomesunlessproperthoughtando v ersightgoesintothede v elopmentofits coreassumptions.Thisisa v oidedb yaholisticviewoftherisksandanunderstandingofthemo vingparts.

“We are excited to partner with Visa, a leader in payments globally, as they are constantly building world-class solutions for consumers and businesses. Our goals are well-aligned. As we scale our wallet across emerging markets such as Nigeria, Mexico and Ethiopia, partnering with Visa to give both consumers and businesses, who have been underserved, access to Visa’s global network made sense to us,” the company said in a press release.

The rise of Fintech challenges established financial centres and incumbent financial institutions to rethink their strategies to remain obligatory passage points in the age of digitizing finance. To appreciate these changes, it is important to maintain theoretical interchange between developments in financial geography and economic geography, its parent discipline

UK-based mobile commerce company Bango and UAE-based mobile payments enabler TPAY MOBILE have formed a strategic partnership to increase access to mobile commerce.

Cassava is a specialised Pan-African Fintech company that delivers innovative digital transaction solutions across the mobile ecosystem. They endeavor to operate wherever money changes hands, with an ambition to drive financial inclusion, digital payments and lead the adoption of e-Commerce in Africa. Cassava is constantly looking for ways tointroduce solutions that bring developmental impact to a diverse range of African communities, thereby improving their quality of life. These solutions are delivered through our strategic partners such as mobile operators, whom we support in attaining their immediate and long-term strategic goals.

MTN embarks on a journey to lead and deliver to its customers a bold new digital world, by transforming itself from being a traditional Communications Service Provider to a Digital Services Provider.

“This partnership represents another significant milestone in our digital transformation strategy at MTN Group. An integrated digital ecosystem is the cornerstone for delivering operational efficiencies and a more enhanced customer experience. Our digital self-service platforms make our customers lives a whole lot brighter through a more personalised and seamless experience. As we continue our digital transformation journey, we are able to be more agile, efficient and customer centric”

Fintech is one of the buzziest trends in financial services right now, and no financial institution wants to be left behind. But with seemingly boundless opportunities, how do you know which fintech partnerships make sense for your FI? Here are seven tips for making sure your fintech activities align with your business strategy: Start with a clearly defined business strategy. Strategy, not technology, should drive your fintech decisions. Before considering any fintech partnerships, make sure you have a clearly defined and communicated business strategy that aligns with your FI’s objectives. Don’t get on board with a promising technology and then build a strategy around it. Don’t blindly jump into opportunities that fall in your lap—seek out partnerships that will support your goals. Don’t just sign on for a fintech partnership because it sounds cool. Only experiment with fintech if you have a goal and purpose in mind. Think about what you’re trying to accomplish. Don’t spread your focus too thinly. Not every new initiative needs to have ties to a fintech partnership. Only experiment in areas that are important to your business. Use your limited resources to explore fintech that can make a significant contribution to your FI. Experimenting with fintech partnerships that do nothing to drive bottom-line results may not be a good use of time and effort.

A lot of times an FI will direct IT staff to develop fintech partnerships. While IT has a lot of insight to offer, they don’t have all the information to drive the decision. Business and IT need to work together to find and deploy fintech partnerships that make sense. It shouldn’t be a strictly business or tech initiative.

Fintech is one of the buzziest trends in financial services right now, and no financial institution wants to be left behind. But with seemingly boundless opportunities, how do you know which fintech partnerships make sense for your FI? Here are seven tips for making sure your fintech activities align with your business strategy: Start with a clearly defined business strategy. Strategy, not technology, should drive your fintech decisions. Before considering any fintech partnerships, make sure you have a clearly defined and communicated business strategy that aligns with your FI’s objectives. Don’t get on board with a promising technology and then build a strategy around it. Don’t blindly jump into opportunities that fall in your lap—seek out partnerships that will support your goals. Don’t just sign on for a fintech partnership because it sounds cool. Only experiment with fintech if you have a goal and purpose in mind. Think about what you’re trying to accomplish. Don’t spread your focus too thinly. Not every new initiative needs to have ties to a fintech partnership. Only experiment in areas that are important to your business. Use your limited resources to explore fintech that can make a significant contribution to your FI. Experimenting with fintech partnerships that do nothing to drive bottom-line results may not be a good use of time and effort.

Founded by Peris Bosire and Rita Kimani, FarmDrive delivers productive digital loans and lay away savings products to smallholder farmers in Kenya, helping them grow their incomes and resilience.