PORTFOLIO FOR CRITICAL ISSUES IN BUSINESS AND MANAGEMENT
Task 2: Presentation
Introduction
This presentation revolves around evaluating the opportunities and drawbacks of the fintech sector in global trade
It also demonstrates effective suggestions which can aid the organisations of Commonwealth nations build adequate trade activities
This study provides information about the fintech sector in the UK (Commonwealth nation) that faces enormous challenges in digital transformation aspects. Additionally, it also offers recommendations for ensuring effective participation of fintech sector in global trade and promoting collaboration activities.
Critical evaluation of the possible challenges and opportunities of the fintech sector in Commonwealth country like the UK within the context of modifying global trade
Opportunities of Fintech Sector in transforming global trade
Fintech sectors have acquired the opportunity to assist customers in the monetary transaction from different part of the world
Customers can acquire a loan through the option of credits offered by the fintech sector and repay the same in future (Zveryakov et al., 2019)
Some of the fintech organisations in the UK include "PayPal, OakNorth Bank, Gocardless, Revoult and Starling Bank”
Fintech has been regarded to drive innovation significantly throughout the financial services (Assets.publishing.service.gov.uk, 2020)
Fintech sectors acquire the opportunity of wealth management with the assistance of data and technology adoption. Different digital transformation solutions like Google Cloud have been helping the fintech sector in the UK. It is responsible to maintain the health of the system and encourages continuity in business resilience and planning (Assets.kpmg, 2020). However, it is also encountered that during the situation of Covid-19, fintech sector of UK has helped business establishments in continuing their business practices. Additionally, it is identified that the UK has been considered to be one of the most positive forefront and leading nations in acquiring financial services hub. The fintech organisations in UK have been continuing to employ digitisation in their practices to ensure continuity an escalation of their global trade activities (Assets.publishing.service.gov.uk, 2020).
There are approximately more than 1600 fintech organisations across the UK which is estimated to expand by 2030 (Klus et al., 2019)
It is analysed that around 42% of the business establishments have adopted fintech services in throughout the UK (Assets.publishing.service.gov.uk, 2020)
Another identified opportunity is an expansion of fintech partnerships in the upcoming 5 years (Petrov et al., 2020)
Fintech firms in the UK are considered to offer trustworthy services to their clients and customers. Concerning this, the firm is continuously adopting different innovation measures for heightening its productivity. From records, it is identified that UK fintech sector has acquired an opportunity to acquire the position of global leader by attaining worth of around 35 billion dollars (Petrov et al., 2020). In relation to this, UK digital tech sector has been contributing to the growth of poor economies throughout the UK. In contrary, employment of digital transformation is not only the sole preserver of the large metropolitan cities, rather the underdeveloped areas like Slough, Aldershot, Heathrow and Guildford are also regarded to acquire higher concentration of digital tech (Goo and Heo, 2020). Hence, it can be evaluated that UK fintech sector acquires higher opportunities for expanding its business industry.
Challenges of Fintech Sector in transforming global trade
UK fintech sector face challenges in enhancing its digital infrastructure
Another identified challenge is attracting talent and well-educated candidates for respective business organisations (Badiane et al., 2020)
Challenge in accessing cluster benefits across UK borders
The sector faces challenges in acquiring the trust of its targeted clients and incorporating collaboration
Although UK is considered to be one of the front runners in the fintech sector in employing digital transformation, the pace of global transformation has been accelerated to a great extent. This creates a gap among the fintech sector of UK in achieving the latest up-gradations (Badiane et al., 2020). In this context, it can be stated that UK fintech sector needs to improve its digital infrastructure further such that it can provide effectual services to its potential customers. On the other hand, it is also encountered that it is becoming too challenging for the fintech sectors for attracting the right talent and retaining them within the industry. This is because the industry is unable to find adequate skills and qualifications among the targeted candidates. As per the records, it is identified that since 2017, there has been growth in financial services in UK by 30% (Assets.ey.com, 2020). Besides this, the spending power of clients has also deteriorated after the outbreak of Covid-19. It is, therefore, essential for the fintech sector to identify the challenges and establish measures for overcoming the same.
Recommendations for Commonwealth Governments for supporting fintech sectors and encouraging collaboration among Commonwealth countries
The government of UK might ensure that each of its citizens attains adequate education regarding technological background
It can be suggested that the business professionals in UK fintech sector can remain updated with the latest technologies such that they can employ the same in their business practices
It might be recommended that the Commonwealth governments can enhance intra-commonwealth trade activities for increasing collaborative practices
Regular meetings among the Commonwealth government can also result in an escalation of collaboration among them
After identifying the opportunities and challenges faced by the fintech sector in UK, it can be recommended to the government of the nation to inculcate activities for enhancing education facilities among its people. This way, the fintech firms would be able to attain adequate talent for their business practices. It is also suggested to the business associates of the fintech organisation to stay updated with the emerging technologies and innovation for accelerating their business productivity. Apart from this, regular meetings among the Commonwealth governments can help in an escalation of collaboration thereby boosting the productivity of the fintech sector of the nation.
Conclusion
In light of this study, it can be concluded that Fintech sector has been implementing the latest technologies in its business practices. However, a gap remains due to the large pace of global trading activities. Further, this study deduced differentiated opportunities attained by the fintech organisations in UK. Correspondingly, recommendations for enhancing collaboration and supporting fintech sectors have been included in this study.
Reference List
Assets.ey.com, 2020. UK FinTech: Moving mountains and moving mainstream, Available at: https://assets.ey.com/content/dam/ey-sites/ey-com/en_gl/topics/emeia-financial-services/ey-uk-fintech-2020-report.pdf [Accessed 28 December 2020]
Assets.kpmg, 2020. Fintech Focus Report – 2020, Available at: https://assets.kpmg/content/dam/kpmg/uk/pdf/2020/07/fintech-pulse-report-2020.pdf [Accessed 26 December 2020]
Assets.publishing.service.gov.uk, 2020. UK Fintech: State of the Nation, Available at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/801277/UK-fintech-state-of-the-nation.pdf [Accessed 23 December 2020]
Badiane, K., Yu, L. and Wui, W.M., 2020. Analysis of Fintech Revolution in China and the UK: A Comparison of Ant Check Later and Zopa. International Journal of Business and Social Science, 11(10).
Goo, J.J. and Heo, J.Y., 2020. The impact of the regulatory sandbox on the fintech industry, with a discussion on the relation between regulatory sandboxes and open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 6(2), p.43.
Klus, M.F., Lohwasser, T.S., Holotiuk, F. and Moormann, J., 2019. Strategic alliances between banks and fintechs for digital innovation: motives to collaborate and types of interaction. The Journal of Entrepreneurial Finance, 21(1), p.1.
Petrov, P., Ivanov, S., Aleksandrova, C.A.P.D.Y., Dimitrov, G.P. and Ovac?kl?, A.K., 2020. Opportunities to Use Virtual Tools in Start-Up Fintech Companies. 20th International Multidisciplinary Scientific Geoconference-SGEM 2020, 20(2.1), pp.247-254.
Zveryakov, M., Kovalenko, V., Sheludko, S. and Sharah, E., 2019. FinTech sector and banking business: competition or symbiosis?.
