FinTech in the UK has a bright future as people get used to the idea of using the internet to invest says Money&Co CEO Nicola Horlick.
Horlick, who has been a leading fund manager in the City of London for over 30 years, will be sharing her insights at BusinessCloud’s ‘Future of FinTech’ event in London on Thursday July 12.
Dubbed ‘superwoman’ in the late 1990s as she juggled a top City job with the demands of raising six children, she is now the CEO of Peer-to-Peer expert Money&Co.
She believes that the traditional world of financial services is seeing a move towards technology as people become more comfortable investing online.
This has been brought about by various changes in the wider landscape, such as the Retail Distribution Review – a set of rules implemented in 2013 aimed at introducing more transparency into the retail sector.
“In the UK, the RDR resulted in many retail clients being cut off by their IFAS (Independent Financial Advisors) and so they now invest through sites like Hargreaves Lansdown,” she told BusinessCloud.
“Internet banking is also huge in the UK and so the more that people get used to managing their money and investing via the internet, the greater the opportunity for FinTech companies.”
Peer-to-Peer lending is one area with great promise which, alongside crowdfunding, has revolutionised the world of FinTech, which is now worth £20bn and has become a magnet for start-ups and entrepreneurs in the UK.
“The banks still have a very big share of the SME lending market in the UK compared to the US,” said Horlick.
“It’s at 90 per cent in the UK and 80 per cent in the US so there is scope for the P2P sector to keep growing in the UK.”
While Horlick believes that raising funds is the number one struggle for the UK’s flourishing FinTech scene, she says that this may be about to change.
“The biggest challenge facing London’s FinTech community is raising capital to grow their businesses,” she said.
“However, given that the government has decided to restrict the areas covered by the enterprise investment scheme, this should help.”
Finally, despite worries from many British tech businesses on the impact of Brexit, Horlick also believes that leaving the EU will not have much of an impact on the FinTech community.
“Most FinTech businesses are focused on UK companies so Brexit will not have much of an impact,” she concludes.
BusinessCloud’s latest event on July 12 will also hear from some of the pioneering companies who are leading the way and look at what’s coming next in the world of FinTech.
Speakers joining Horlick onstage include Adam Ward, CEO & co-founder, Airtime Rewards; John Battersby, head of communications and policy, Ratesetter; Muhammad Asim, CEO, Marq Millions; Tim Kimball, CTO, Aire Labs; and Kerim Derhalli, CEO, Invstr.
The event is run in association with Money&Co and Another Crowd.