# UK Finance: one giant leap for innovation in our financial sector
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-07-21
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: The Future of Financial Services in 2017
Meta Description: Learn how the financial sector is changing with the times, offering more convenient and cheaper alternatives to traditional services. Find out about UK Finance
URL: https://financedigest.com/uk-finance-one-giant-leap-for-innovation-in-our-financial-sectorhtml

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By **Melanie Pittham**, Creative Innovation Director at [The BIO Agency](http://www.thebioagency.com/)

The retail, music and media industries had to adapt years ago to the impact of the internet on their relationship with consumers, but the [financial](https://www.financedigest.com/financial-literacy-what-is-financial-literacy-and-why-is-it-important.html) services sector has been much slower to move with the times.

When it comes to managing our money in 2017 we want cheaper and more convenient alternatives to the services being offered by conventional [banks](https://www.financedigest.com/psd2-the-real-rts-deadline-is-closer-than-banks-think.html) and the traditional providers of insurance, pensions and mortgages.

![Melanie Pittham](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/21409198515d007a9f26bo-1736843673192-compressed.jpg)

Melanie Pittham

Our wishes have been granted by [technology](https://www.financedigest.com/kelda-technology-pushes-ahead-with-global-growth-plans-afternew-appointment.html) which has been a game changer in this sector as a flood of disruptive fintech brands have challenged the old guard’s cosy [market dominance](https://www.financedigest.com/facebook-faces-3-2-billion-uk-class-action-over-market-dominance.html "Facebook faces .2 billion UK class action over market dominance").

[Technology has also boosted financial](https://www.financedigest.com/financial-firms-can-use-technology-combat-todays-cybercriminals.html "How financial firms can use technology to combat today’s cybercriminals") social mobility by opening up products and services to smaller businesses and minority groups previously intimidated by traditional big banks and who faced barriers such as language difficulties.

The [digital revolution](https://www.financedigest.com/the-fintech-digital-revolution-will-continue-in-2022.html "The Fintech Digital Revolution Will Continue in 2022") in how consumers handle their money will not slow down because [technology](https://www.financedigest.com/kelda-technology-pushes-ahead-with-global-growth-plans-afternew-appointment.html) is advancing all the time with new developments such as biometrics and cryptocurrencies.

Whether it has wanted to or not, the [financial sector](https://www.financedigest.com/iot-for-the-financial-sector.html "IoT for the Financial Sector") has had to change and become more innovative and customer-centric.

The [industry took a major step forward to putting customers first in July with the launch of the super trade body called](https://www.financedigest.com/struggling-british-pig-industry-calls-for-tesco-to-step-up.html "Struggling British pig industry calls for Tesco to step-up") UK Finance.

This is an umbrella organisation for more than 300 global businesses that provide banking, loans, access to international [stock markets](https://www.financedigest.com/online-trading-and-stock-markets.html "Online Trading and Stock Markets") and payment services. It brings together the likes of the British Bankers’ Association, the Council of [Mortgage Lenders](https://www.financedigest.com/things-mortgage-lender-takes-into-account-when-processing-an-application.html "Things Mortgage Lender Takes Into Account When Processing an Application"), [Financial](https://www.financedigest.com/financial-literacy-what-is-financial-literacy-and-why-is-it-important.html) Fraud Action UK, Payments UK and the UK Cards Association.

There are some heavyweights leading the new body. The industry big cheeses include Steve Jones (ex-Barclays, Schroders and Santander) as chief executive and Bob Wigley as chair. Wigley is the former Europe, Middle East & Africa chair of Merrill Lynch and an ex-member of the Court of the [Bank of England](https://www.financedigest.com/bank-of-england-poised-to-raise-rates-by-most-in-33-years.html "Bank of England poised to raise rates by most in 33 years").

UK Finance claims that the [customer’s voice will be heard on the new board with the inclusion](https://www.financedigest.com/how-fintech-aids-financial-inclusion-and-helps-customers-through-crises.html "How Fintech aids financial inclusion and helps customers through crises") of “a strong, independent consumer champion”. We await the details.

Considering how we live our lives in 2017 it is crucial that the industry does become better at listening to the customer. When it comes to our money, many of us now want and [expect to manage](https://www.financedigest.com/food-waste-management-market-expected-to-expand-more-than-three-fold-through-2032.html "Food Waste Management Market Expected to Expand More than Three-Fold through 2032") our funds using technology.

And whether we are ordering books from Amazon or buying a mortgage from a bank, we expect top-notch [customer service from the companies](https://www.financedigest.com/financial-companies-delivering-better-value-for-customers-in-loyalty-programmes-compared-to-other-sectors.html "Financial companies delivering better value for customers in loyalty programmes compared to other sectors") we interact with.

There is no doubt that the boundaries between banking [services](https://www.financedigest.com/the-role-of-fintech-in-disrupting-traditional-banking-services.html "The Role of Fintech in Disrupting Traditional Banking Services") are beginning to blur so [banks](https://www.financedigest.com/psd2-the-real-rts-deadline-is-closer-than-banks-think.html) and other providers must find more creative ways to use the [technology](https://www.financedigest.com/kelda-technology-pushes-ahead-with-global-growth-plans-afternew-appointment.html) available to them. The [launch of UK Finance and its stated aims of re-building customer trust and promoting industry](https://www.financedigest.com/adverty-launches-industry-first-streaming-video-technology-for-in-play-ads-in-partnership-with-seenthis.html "Adverty launches industry-first streaming video technology for In-Play™ ads in partnership with SeenThis") collaboration should help to make that happen.

Its members are starting to appreciate how much their customers love technology having seen massive numbers embrace the [transformation of payments](https://www.financedigest.com/crossing-the-rubicon-why-cross-border-payments-are-primed-for-transformation.html "Crossing the Rubicon: Why Cross-Border Payments Are Primed for Transformation "). The convenience of contactless and the ability to tap a [mobile phone to pay bills or to buy](https://www.financedigest.com/sony-to-buy-mobile-game-developer-in-push-beyond-consoles.html "Sony to buy mobile game developer in push beyond consoles") a coffee is something people have come to expect.

Of course cash [remains the most commonly-used form of consumer](https://www.financedigest.com/global-emi-shielding-market-significantly-hit-by-lack-of-consumer-demand-scenario-post-covid-19-crisis-likely-to-remain-gloom.html "Global EMI Shielding Market Significantly Hit By Lack Of Consumer Demand; Scenario Post Covid-19 Crisis Likely To Remain Gloom") payments. According to Payments UK, British consumers still make around half of their transactions in cash, with the other half divided between debit and credit cards, [mobile payments](https://www.financedigest.com/the-future-of-mobile-payments-and-e-wallets.html "The Future of Mobile Payments and E-Wallets") and cheques.

However many companies already refuse to take cash payments.

Think about buying a snack on a [flight](https://www.financedigest.com/london-flight-hotel-fares-surge-ahead-of-queens-funeral.html "London flight, hotel fares surge ahead of Queen’s funeral") or how Transport for London insists you buy tickets for London Buses with a card. Many parking meters are also automated.

[Companies just don’t want the hassle and administration costs](https://www.financedigest.com/factbox-companies-count-the-cost-of-ditching-russia.html "Factbox – Companies count the cost of ditching Russia") of dealing with coins and notes.

There are still challenges for banks.

[Consumer groups](https://www.financedigest.com/tesco-reported-to-competition-watchdog-by-consumer-group-over-pricing-concerns.html "Tesco reported to competition watchdog by consumer group over pricing concerns") complain about [banks](https://www.financedigest.com/psd2-the-real-rts-deadline-is-closer-than-banks-think.html) closing their branches but such a strategy makes sense when you consider how many people now want to self-serve using mobile devices. Yet for those who still prefer to use cash and cheques, and talk to a human being, the demise of the branch network is anything but customer-centric.

[Banks must become better at explaining their reasoning for shutting branches and communicate more effectively the benefits of the technology they are investing](https://www.financedigest.com/nomuras-india-head-of-investment-banking-steps-down-sources.html "Nomura’s India head of investment banking steps down -sources") in. We are seeing the rolling out of more ATM [machines to help consumers](https://www.financedigest.com/recent-research-waterjet-cutting-machine-consumables-market-is-expected-to-grow-at-a-cagr-of-4-8-by-2021-to-2031persistence-market-research.html "Recent Research: Waterjet Cutting Machine Consumables Market Is Expected To Grow At A CAGR Of 4.8% By 2021 to 2031:Persistence Market Research") make the transition, with about 70,000 now scattered around the UK.

What is exciting is that the technology is there to go even further to improve financial services. It just [needs providers to embrace](https://www.financedigest.com/why-you-need-to-embrace-nostalgia-marketing-right-now.html "Why You Need to Embrace Nostalgia Marketing Right Now") the potential opportunities.

In what remains a very traditional sector, [financial](https://www.financedigest.com/financial-literacy-what-is-financial-literacy-and-why-is-it-important.html) service providers, regulators and the government must put to bed their mistrust that customers will [adopt technology](https://www.financedigest.com/good-loop-adopts-seenthis-streaming-technology-to-minimise-carbon-footprint-of-its-purpose-led-ad-units.html "Good-Loop adopts SeenThis’ streaming technology to minimise carbon footprint of its purpose-led Ad units") so that innovation can thrive.

Customers should be able to engage with any service aspect, any way they want – why shouldn’t they be able to [secure a mortgage](https://www.financedigest.com/9-priceless-tips-to-help-you-secure-the-right-contractor-mortgage.html "9 priceless tips to help you secure the right contractor mortgage") via messenger? The biometric verifications required exist. There is no question that [banks have more data](https://www.financedigest.com/asia-shares-edge-higher-wary-of-us-bank-data.html "Asia shares edge higher, wary of US bank data") on us than any other service provider, so why aren’t they using it to help people live better financial lives? If I’m an existing customer and you know me, why can’t I apply for a [bank loan](https://www.financedigest.com/u-s-european-banks-could-lose-over-5-billion-from-risky-buyout-loans.html "U.S., European banks could lose over billion from risky buyout loans") in one click and fast track the application process? And why aren’t banks using [data more intelligently to combat financial fraud](https://www.financedigest.com/big-data-analytics-fraud-prevention-in-the-financial-sector.html "BIG DATA, ANALYTICS & FRAUD PREVENTION IN THE FINANCIAL SECTOR") and cybercrime?

I believe we have yet to see the full utilisation of technology in financial services, which is why the coordinated voice of UK Finance is to be welcomed.  The members who embrace change will thrive while those that remain stuck in the dark [ages will die](https://www.financedigest.com/soccer-former-star-italy-striker-vialli-dies-aged-58.html "Soccer-Former star Italy striker Vialli dies aged 58") off.


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