R&C: Could you provide an overview of the main trends and developments to have emerged in the FinTech and emerging payments space in recent years? To what extent are established financial institutions’ (FI) systems and protocols being disrupted?

Parfitt: A plethora of new entrants are changing the market significantly, typically bypassing legacy back-office processes and systems. They are attracting consumers with more personalised financial services and a better customer experience than traditional banking can offer. The new entrants pitch themselves as more nimble and consumer-friendly than stale and lethargic incumbents. They also promote the ease and convenience of remote access and are leading technologies and innovation in this area. However, not everyone is in their target market. Consumer adoption runs across a very broad spectrum, from early adopters to risk-averse consumers, so these challengers focus their efforts on more technology-savvy prospects. Both national and international regulators are driving change and innovation, for example with the Payment Services Directives – PSD 1 and PSD 2. This puts pressure on banks, financial service providers and payment schemes to increase competition, innovation and access.

Oct-Dec 2018 Issue

Acuris Risk Intelligence