WhiteSight

The UK Big Banks’ Bet on FinTech

Table of Contents

The dawn of the digital age in the financial sector has paved the way for increased alliances between incumbents and FinTechs. In an attempt to bolster the UK’s FinTech sector, FinTech Pledge, developed by the Fintech Delivery Panel with support from HM Treasury (HMT) as an initiative aimed towards creating a financial ecosystem by enabling enhanced collaboration between banks and leading FinTech firms, was launched in 2020. In 2022, the Big 4 UK banks – Natwest, Barclays, Lloyds and HSBC – have been busy walking the talk through their ecosystem-focused initiatives and are moving the needle on the Bank-FinTech collaboration mandate. Going after isolated partnerships seems to be a thing of the past for the UK High Street banks. The Big 4 have instead resorted to forming an ecosystem of FinTechs with an array of carefully curated alliances that help them unlock ecosystem orchestration at scale. The symbiotic collaboration mainly revolves around a few key ecosystem orchestration themes, including:i) Platform-as-a-Service, a utility-based model that allows clients to develop, run and manage banking applications in the cloud,ii) Banking-as-a-Service, the provisioning of banking products and services through third-party distributors,iii) Innovation Sandbox, brings a variety of FinTech collaboration opportunities through an efficient design […]

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