Opportunities and Challenges of UK Fintech Sector

OPPORTUNITIES AND CHALLENGES OF UK FINTECH SECTOR OPPORTUNITIES AND CHALLENGES OF UK FINTECH SECTOR 7 7 RUNNING HEAD: OPPORTUNITIES AND CHALLENGES OF UK FINTECH SECTOR Opportunities and challenges of UK Fintech Sector Name of the student Name of the university Challenges of the Fintech sector in the United Kingdom 4 Opportunities in the Fintech sector in the United Kingdom 5 Recommendations for the United Kingdom’s Fintech sector 6 Conclusion 7 References 8 Executive Summary In this report

RUNNING HEAD: OPPORTUNITIES AND CHALLENGES OF UK FINTECH SECTOR
Opportunities and challenges of UK Fintech Sector
Name of the student
Name of the university

1OPPORTUNITIES AND CHALLENGES OF UK FINTECH SECTOR
Table of Contents
Challenges of the Fintech sector in the United Kingdom..........................................................4
Opportunities in the Fintech sector in the United Kingdom......................................................5
Recommendations for the United Kingdom’s Fintech sector....................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

2OPPORTUNITIES AND CHALLENGES OF UK FINTECH SECTOR
Executive Summary
In this report a detailed description of UK’s Fintech sector is given. This report states that UK
plays a vital role in the commonwealth organisation. In this report the impact of covid-19
which has both the opportunities and challenges has also been mentioned.

3OPPORTUNITIES AND CHALLENGES OF UK FINTECH SECTOR
Introduction
UK is a commonwealth country. It plays a vital role in the commonwealth
organisation. The Covid-19 played a vital role in the commonwealth organisation. The
pandemic gave many opportunities to UK in their Fintech sector. With the opportunities the
Covid-19 pandemic also gave many troubles to the Fintech sector of UK. It made the Fintech
sectors of UK to for many challenges.

4OPPORTUNITIES AND CHALLENGES OF UK FINTECH SECTOR
Challenges of the Fintech sector in the United Kingdom
The current regulations of the fintech sector of the United Kingdom are kind of
complex. Therefore it poses a bigger challenge in innovation. The infrastructure and time of
manufacturing are becoming more. The cost that is associated with manufacturing is also
increasing. For many startup businesses in the United Kingdom, there is a prohibition of
implementing the applicable regulations (Treasury.govt.nz 2020). These can be an important
point for the competitors. The goods and services that a company is producing for their
company have also had a good brand which makes a brand value to the company
(Thecommonwealth.org 2020). The protection of the brand value of the company is done
with the copyright act of the United Kingdom. The copyright is done by IPR. IPR protects
that software that is valuable for the companies. According to the GDPR provision that was
passed by the United Kingdom government, the companies are now advised to keep the data
of all of their customers with legal consent from their customers. The customers need to be
informed properly before using their database. To obtain the personal data of the customers,
the business must have proper consent by using biometric tests such as fingerprint scans and
eye scans (Unctad.org 2020). The personal data can also be deleted if the consumer wants to
delete it. The data protection officer is now in the charge of having a breach in the security
system. There are many cyber security challenges that the companies of the fintech sector of
the United Kingdom are facing. The GDPR helps the companies to overcome such
challenges.

5OPPORTUNITIES AND CHALLENGES OF UK FINTECH SECTOR
Opportunities in the Fintech sector in the United Kingdom
The coronavirus pandemic has changed every aspect of the life of humans concerning
both personal and professional ways. Due to this pandemic, the business world has seen an
evolution and the crisis made some rare opportunities for the United Kingdom fintech sector
through which they can increase their business (Www2.deloitte.com 2020). In the quarantine
and at the time of lockdown people are using remote technologies more and more. The
consumer is going more into the digital platforms and they have started using them more like
they have started shopping online (Unctad.org 2020). The government of the United
Kingdom is also encouraging its citizens to use cashless transactions more to maintain the
social distancing and mass gathering which is giving the fintech sector to improve its
business(Youtube.com 2020). The fintech business tends to be agile and innovative and it is
always prepared for remote services. Thus the lockdowns and the quarantines due to the
global pandemic are benefitting them to work on their business smoothly.

6OPPORTUNITIES AND CHALLENGES OF UK FINTECH SECTOR
Recommendations for the United Kingdom’s Fintech sector
Due to the global pandemic, the fintech sector of the United Kingdom is vastly
affected. The fintech sector of the United Kingdom now should focus on the cash inflow or
find the investors who are interested to invest in their company to start the business again.
They should focus on the active promotion that catches the eyes of the investors. The
government should make laws regarding innovation and technologies. This is because the
fintech sector is reliable on the innovation of the software and if the government imposes law
on them then it will be tough for those companies who are working in this sector to sustain.
The government should also look after the cross border taxation of the fintech sectors. This is
because the taxes that are imposing on the companies of the fintech sectors making their
business slow and hence it is creating a barrier for them to do the business efficiently. Thus it
is creating a problem for them for rapid growth.

7OPPORTUNITIES AND CHALLENGES OF UK FINTECH SECTOR
Conclusion
From the above discussion, we can see that the United Kingdom is at the top of all the
commonwealth member countries. They have transformed themselves vastly in the digital
market. They have huge trade with other countries due to this rapid digital transformation.
This report also states that the coronavirus pandemic has created a huge impact on the fintech
sector and with that, it also opened many opportunities to grow their business.

8OPPORTUNITIES AND CHALLENGES OF UK FINTECH SECTOR
References
Thecommonwealth.org. 2020. [online] Available at:
<https://thecommonwealth.org/sites/default/files/inline/CFT%20Chapter%209.pdf>
[Accessed 30 December 2020].
Treasury.govt.nz. 2020. [online] Available at:
<https://www.treasury.govt.nz/sites/default/files/2019-06/minterellison-fintech.pdf>
[Accessed 30 December 2020].
Unctad.org. 2020. COVID-19’S Economic Fallout Will Long Outlive The Health Crisis,
Report Warns | UNCTAD. [online] Available at: <https://unctad.org/news/covid-19s-
economic-fallout-will-long-outlive-health-crisis-report-warns> [Accessed 30 December
2020].
Unctad.org. 2020. New Survey Shows COVID-19’S Impact On E-Commerce In Poorer
Nations | UNCTAD. [online] Available at: <https://unctad.org/news/new-survey-shows-
covid-19s-impact-e-commerce-poorer-nations> [Accessed 30 December 2020].
Www2.deloitte.com. 2020. [online] Available at:
<https://www2.deloitte.com/content/dam/Deloitte/us/Documents/financial-services/us-
beyond-covid-19-new-opportunities-for-fintech-companies.pdf> [Accessed 30 December
2020].
Youtube.com. 2020. [online] Available at: <https://www.youtube.com/watch?
v=A3FPPuLhda8&feature=youtu.be> [Accessed 30 December 2020].