Every Wednesday, we delve into the latest fintech updates from across the UK. This week brings updates from Moneyhub, Innovate Finance, Veriff and Ensono.
UK fintech funding falls
UK fintech funding has dropped in the first half of 2023, as the total cash raised by UK fintech firms reached $2.9billion in the first six months – a 37 per cent decrease compared to the latter half of 2022, industry body Innovate Finance has revealed.
The fall in investment follows a global trend: fintech funding saw 2,500 deals worth $31.7billion in H2 2022 but only 1,714 deals worth £27.3billion in H1 2023.
Steven Mooney, CEO of FundMyPitch, commented: “Funding for SMEs is absolutely vital if the nation wishes to reach economic stability and future growth, especially in sectors such as the fintech sector that drives innovation and attracts international investment.
“The UK has always been seen as an international financial hub and retaining this position will only be possible if funding into the SMEs that support its developments is provided. The lack of financial backing will hold back small and medium-sized businesses that offer huge potential.”
Moneyhub joins forces with Voyant
Moneyhub, the open finance data platform, has partnered with wealth management solution provider Voyant, to give advisers using Voyant’s platform real-time access to a more “complete picture” of the clients’ financial world.
The solution will support advisers with Consumer Duty requirements and improve their ability to help clients identify and monitor progress against their goals, demonstrating positive client outcomes – one of the key challenges of Consumer Duty.
Kim Jenkins, managing director of Moneyhub, API said: “A complete picture of a client’s financial information is vital for advisers to give personalised and effective advice. We’re excited to be working with Voyant to roll out our open banking and open finance connections to help improve efficiency, meet regulatory obligations and drive better consumer outcomes in the adviser space.”
Cloud computing misunderstanding could cost UK SMEs
A lack of understanding of cloud computing and its benefits could put some UK-based small and medium-sized businesses in danger of falling behind the competition, according to cloud phone system provider TelephoneSystems.Cloud.
The firm also revealed that 48 per cent of UK SMEs still need to implement a technology investment strategy.
Juliet Moran, technical director at TelephoneSystems.Cloud, discussed the firm’s findings: “Many SME Business owners remain sceptical of new technology. Although moving to the cloud offers businesses a more affordable and sustainable alternative to hosting onsite, some business leaders feel compelled to stick to what they know: on-site filing cabinets and inefficient, expensive, and energy-consuming servers.
“Cloud technology can cut costs and offer flexibility and efficiency in a hybrid working world, which is vital for employers, employees, as well as customers.”
Veriff achieves certification from UK government
Global identity verification provider Veriff has achieved certification against the UK government’s Digital Identity and Attributes Trust Framework (UKDIATF). This certification enables Veriff customers to verify the identities of UK-based users more confidently while complying with UK government-approved rules.
Introduced last year, UKDIATF provides guidance and requirements for identity and authentication service providers to ensure that they meet certain technical and security standards, as well as principles for protecting users’ privacy and data.
Indrek Heinloo, COO of Veriff, said: “This certification gives our global customers additional assurance that our internal processes meet generally accepted best practices. Even though UKDIATF is specifically designed for the UK market, certification requirements such as data privacy, risk management, and others – are in line with global industry standards.”
Human interaction still preference in the UK
Technology adviser Ensono has revealed that human agents remain crucial to modern insurance; as 56 per cent of UK insurance consumers said they would prefer to speak to someone on the phone about insurance services over any other medium.
However, Ensono revealed it expects change to occur soon after it found that UK insurers expect to increase tech investment by 35 per cent over the next two years, on average.
The most popular methods of communication were found to be:
- Speaking to a person on the phone (56 per cent)
- Email (41 per cent)
- Speaking with a person online (34 per cent)
- Mobile app (27 per cent)
- Self-service customer website (20 per cent)
- Chatbot (10 per cent)