The PAYTECH Book

Refining the Collective Responsibility for Compliance

By Nicolette Brown

Marketing Manager, Napier

and and Julian Dixon

CEO, Napier

The Rise of the FinTech Revolution

Technology, and in particular smartphones, have revolutionized our day-to-day lives in ways that were unimaginable as little as 10 years ago. The speed with which the digital and mobile wallet industry is changing is exponential. By 2022, it’s estimated that the transaction value of mobile payment apps will reach nearly US$14 trillion – up from just over US$4 trillion in 2018.¹

Over 42% of digitally active adults now use the services of at least one FinTech firm, and more than 20 million people in the UK make use of banking apps as a more convenient way of managing their finances.²

Publishing the Fintech Strategy Report in 2018, the UK government stands firmly behind the FinTech revolution and is keen to incentivize innovation. The report highlights that the government and regulators have an important role to play in removing barriers to entry and growth and, as a result, it has created a host of initiatives, which include:³

• The Financial Conduct Authority’s (FCA’s) Regulatory Sandbox and Innovation Hub testing environment for new FinTechs.
• The FinTech Accelerator facilitated by the Bank of England.
• Legislation so that non-bank payment service providers will be able to directly access payment systems, creating a level playing field with incumbent financial services firms.
• Creating a new Payments Systems Regulator ...