To counter the insurgence of alternative banks, banks - 9 major ones, came together to bring data into the hands of the consumers through Open Banking – a PSD2 (The Payment Services Directive established by the EU to regulate payment services), implementation in the UK. The standard implemented through Open Banking Limited– a non-profit established to seamlessly integrate data access across banks will provide consumers with direct payment from banks instead of re-routing or authentication through a third-party.
The alternative banking services and cryptocurrency have challenged HSBC, Barclays, RBS, Santander, Bank of Ireland, Allied Irish Bank, Danske, Lloyds, and Nationwide. By reducing the cost of the transaction through FinTech, banks hope to retain the customer through the next decade.
Although most major banks look at Cryptocurrency - the decentralized payment system as a threat to their existence, The Bank of England has successfully tested a real-time payment settlement service - the 'inter-ledger program' developed by Ripple - the biggest disruptor in Blockchain. The proof of concept run in July 2017 is set to replace the 21-year RTGS system that currently handles daily volumes of $690 billion - mostly as payment settlements for companies and real-estate deals.
What do the latest trends in FinTech mean for MBA applicants targeting UK-based MBA programs?
The improvements in computing technology enabled a drove of start-ups to enter the space. Millennial MBAs, who value meaningful work over stable income, embraced FinTech over traditional investment banks.
Up to 28% of Businesses in the Banking and Payments, and 22% in the Insurance, Asset Management, and Wealth Management sector are likely to face a loss of Business with the evolution of FinTech companies.
Citibank has predicted that in 10 years, more than 35% of direct jobs will disappear in Financial services company and proportional indirect jobs in Law and Accounting firms will be impacted as FinTech technology becomes mainstream.
The only major roadblock to FinTech’s mass adoption is the regulators. Luckily, UK’s Financial Conduct Authority established in 2013 didn’t look at innovation with suspicion but embraced the emerging FinTech as an industry that can improve consumer protection and foster competition. The Entrepreneurial culture led to the creation of the first regulatory ‘sandbox’ in 2015 where new FinTech products were monitored and tested.
London’s role as the FinTech capital should be credited to the pro-activeness of the VCs and also the openness of the regulators – a culture that encouraged MBAs to be part of an innovative FinTech eco-system.
2018 MBA Research Guide - Choose your MBA
F1GMAT's Comprehensive MBA Research Guide will teach you how to select MBA programs through a bottom-up approach.
Articulating your Post-MBA Goals and Career Path is the FIRST step. Which program will give you that hike in Salary, Switch in Career, Change in Location or Job Satisfaction?
We cover them all through our extensive analysis.
+ How to Choose the Best MBA Program: Factors to Consider
Define Post-MBA Goals
Pick your Path: Generalize or Specialize
Use Moral Algebra Method
Use Multi-Attribute Utility Theory
Understand the Top 5 Risks
Measure MBA Career Service Team's Effectiveness
Use Bookending to Calculate MBA Admission Chance
Use Net Present Value to Calculate MBA Return on Investment
Don't Fall for the Mere Exposure Effect
Best Practices to find the truth in MBA Information Session or MBA Tour
Comprehensive MBA Research Guide: Includes Top MBA Programs by 19 Specializations:
+ General Management
+ Operations Management
+ Supply Chain Management
+ Luxury Management
+ Information Systems
+ Hospitality Management
+ Leadership Development
+ Military &
+ Top MBA Program Ranking
Top 20 MBA Programs - Tuition Fee (2018)
Top 31 MBA Programs in United States – Total Cost & Salary (2017)
Top 60 MBA – GMAT and GPA (Average & Median)
Top 20 European MBA Programs - Tuition Fee, Total Cost & Salary
Top 20 European MBA Programs (Based on Actual Salary Increase)
Top 20 European MBA Programs (Short-term return on investment)
Top 20 Affordable European MBA Programs
Top 10 MBA in UK – Salary & Fee (2018)
Top MBA Destinations Based on Happiness Index
Top MBA Destinations based on Innovation Index
Top 10 MBA Job Markets based on Cost of living and Purchasing Power
Top MBA Destination: By Economy
+Comparisons - Top MBA Programs
Wharton vs. Columbia MBA (2018)
MIT vs. Stanford MBA (2017)
Haas vs. Ross MBA (2018)
Kellogg vs Ross MBA
Booth vs Wharton MBA
MIT Sloan vs Tuck MBA
IMD vs. INSEAD MBA (2017)
IIMA vs. ISB (2017)
+ MBA in France (2018)
Top Industries in France
Top MBA Programs in France
+ MBA in the UK (2018)
Top Industries in the UK
Top MBA Programs in the UK
Scholarships in the UK