Technology is changing the shape of Britain’s financial services (FS) industry extremely quickly, and 2016 will see the sector make serious steps toward a digital revolution. Here are our key predictions for what the UK’s FS industry and its customers can expect in 2016:
Challenger banks will continue to disrupt high street rivals
One of the biggest disruptors to the banking sector in recent years has been the growth of challenger banks. Since 2012, 21 new providers hoping to rival the Big Five have been granted a license by the Bank of England. The latest to be given the green light is Tandem Bank, a digital-only bank due to launch this year. It will join Atom, the UK’s first digital-only challenger, which gained its license in June and which has recently struck a funding deal with Spanish Bank BBVA.