Financial technology or FinTech as popularly known is a fancy new term used to describe institutions that utilize the emergence of new technology to c
Financial technology or FinTech as popularly known is a fancy new term used to describe institutions that utilize the emergence of new technology to conduct financial transactions. At the very helm of the Financial technology world is London, where a suitable and conducive environment for the flourishing of Financial Technology exists. Paris is, however, giving London a run for its money in this world as it intends to dethrone London from the helm of FinTech.
The Paris FinTech Forum hosted in the recent past boasted of a total figure of 1500 personnel including bankers, investors, and entrepreneurs who discussed the viability of FinTech in France. This attendance is a significant increase in the previous year’s figures threefold. France looks to be making good use of Britain’s Brexit and ongoing court proceedings seen to be adding pressure on the industry.
Bloomberg reports that FinTech in Paris has gone through impoverished financing coupled with a constrained business atmosphere in the past few years.
Bank of France Governor, Francois Villeroy de Galhau states that the idea of a central banker, a few years ago, speaking at an innovation event would have been almost incredible. He continues that the digital progression is particularly challenging for bankers and insurers and that it destabilizes the common model for client relations. He then highlights a looming difficulty in decision making.
These statements by Francois Villeroy, in comparison to London which has been enjoying a push from the Financial Conduct Authority (FCA) within the FinTech sector. Since the establishment and commencement of its Project Innovate, startups have significantly gained help and guidance regarding blockchain and policies they need to take heed to.
In recent years, the FCA furthered their efforts towards the improvement of FinTech by informing that it had added among its ranks the first 24 companies that would be engaged in their regulatory sandbox. Not only was this particularly helpful in bringing ideas to the market at a fast pace but also added the much-needed funds that FinTech companies and institutions in Britain need to raise.
London banks cross the border over to France. Despite the Brexit result that set interstate relations backward and is in a way causing a crippling of Britain’s economy, reports state that London Banks are already moving to France, more-so Paris.This only serves as good news to the French nation. This, however, proves that more ought to be put in the rigorous fight to oust London from the top spot.
A BVA survey for the French Banking Federation states that, in 2016, there was a decrease in the number of bank customers visiting their bank more than once a month, from 62% to 20%.
More use is being made of the smartphones for bank transaction as the customers turn to a digital age. France has to, therefore, take the leap and embrace technology to remain relevant in the banking sphere.