mmob has big plans for connecting a global network of digital brands. So, why are we launching in an already established, competitive market?
There are several aspects that make the UK the perfect market for mmob to focus on first. With existing infrastructure and a large consumer market, the UK is a world-leading fintech industry that mmob will use to develop. Once further established, mmob’s roadmap details expansion into complementary global markets, made easier with solid foundations in the UK.
The UK is the hub of fintech
The UK has had a head start in the fintech industry being one of the first countries to invest and now enjoys world leader status. The high level of competition in the UK has led to more innovative products emerging to satisfy a growing consumer demand. For the reasons outlined below, the UK market is the perfect ground for mmob to launch from before entering global markets.
- Early fintech market — The UK and Europe were quick to launch and invest in Open Banking and other markets have followed the UK’s example. Price comparison websites (PCWs) launched back in the 1990s have continued to grow and provide a key launching point for new fintechs to provide services.
- Competition in an established market — As the market is already established, the vibrant ecosystem sees new players emerging all the time and this competition makes for stronger fintech businesses.
- Regulations — New companies must satisfy initial criteria designed and regulated by the FCA to ensure integrity of products and services. The FCA’s recent Global Financial Innovation Network (GFIN) connects regulators worldwide to promote universal regulatory standards and cross-border testing, adapting the UK framework for other regions.
- Investment — Investor trends are shifting from seed to later rounds, which will reduce the volume of new companies emerging in the next few years, emphasising that now is the right time to launch in the UK. The UK government also has high investment in the fintech industry that improves funding opportunities.
- High consumer uptake — The UK market has a very high consumer adoption rate of fintech products at 71%, higher than the global average. The UK is highly digitally literate, with some of the highest rates of broadband, mobile phone and digital banking usage in the world. Younger consumers are engaging in financial planning far earlier than previous generations as they face unstable changes to house prices, pensions and retirement ages. Apps such as Plum and Moneybox have utilised this shift, providing a range of investment and saving products customers can easily control.
This isn’t to say Open Finance has been widely adopted by the average UK consumer, with these figures unfortunately remaining low, but the market is ready for Open Finance innovation and time will tell how fintechs will be used.