In 2015, The UK was described as the most FinTech-friendly country, with over 61,000 employees and generating £6.6bn in revenues. In 2016 Billions of dollars have been invested in UK FinTech. The UK FinTech sector this year is still very productive even more nowadays. Despite its huge success, the FinTech services in the UK market faces a lot of obstacles and challenges, in the following article we will look into the top three fintech marketing issues and challanges;
Brexit is one of the major challenges facing UK FinTech marketing in 2017. After Brexit, several FinTech executives said that money-generating companies would leave London and relocate to other countries.
Another obstacle facing the executives in the financial market is the difference in regulations, licensing and compliances between countries. These differences caused difficulty in the process and of course creates costs.
One of the most considerable obstacles facing UK FinTech market in the context of Brexit is passporting, which is a process that enables UK-based businesses to use their UK licenses to perform in the other EU member states. If the country loses its passporting rights, UK FinTech companies would not be relying upon their licenses to do business in the EU member countries.This will affect the UK businesses on so many levels; example staffing. Most of the staff members who work in the UK will need to move to the countries where their offices will be relocated.
UK FinTech startups face one of the most obvious challenges which is the ability to identify if a regulation set could apply to them or not. Some of the FinTech firms are ignorant of the rules and laws: they don’t know exactly which regulation requires their compliance or which regulatory agency governs them.Although UK regulators are rated as the most FinTech friendly, The Association of Chartered Certified Accountants (ACCA) has reported that FinTech UK will need well-founded guidance to control the challenges of the post-Brexit regulatory system due to the changes in the regulations which might be a serious threat to the growth of the FinTech industry in UK.
Kit Malthouse the former deputy mayor for policing in London and for business and enterprise in the capital claimed in 2014 that London’s FinTech start-ups were held back due to the lack of investors. The Smith & Williamson enterprise quarter index reported that there are only 50% of UK business leaders who say that they feel that enough funding is accessible, they also said that since the UK is already an expert on creating tech startups, there will always be a need to focus more on growing businesses.
This year has been very difficult for start-ups in the UK to get funded, and it is possible that this issue might remain till the end of 2017 as the number of FinTech funds changing has decreased by 26% during the 3rd quarter. Lawrence Wintermeyer CEO of Innovative Finance claimed that the UK has been experiencing a big drop in investment, year-on- year.
With these challenges, FinTech start-ups need to develop a solid and data driven strategies to start and emerge amongst other companies taking in consideration all the above mentioned challenges. Every industry has its own marketing issues, but having the know-how, patience and skills will help you preserve as a start-up.
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