04.30.2024

IA Launches Blueprint for Fintech Engagement and Onboarding

04.30.2024
How APIs are Changing the FinTech Narrative

The latest whitepaper from IA Engine, the Investment Association’s FinTech hub, aims to equip the investment management industry with the skills and understanding to unlock the transformative power of FinTech.

The UK investment management sector is a world-leading international hub, managing £8.8 trillion, second only to the US. UK FinTech is an equally significant market, with an impressive $12.5bn invested into FinTech in 2022 – and a continued focus on growth in 2023, with the launch of the UK’s Centre for Finance, Innovation and Technology following the Kalifa Review.

The escalating digital demands of clients and investors have made innovation central to the future of the industry. Over three-fifths (62%) of today’s 18–24-year-olds are already investing, and over half (57%) use apps to invest. With a record £5.5 trillion set to be transferred between generations over the next 20-30 years in gifts and inheritance, now is the time to adapt to meet the changing needs of the UK market.

Advancements in technologies such as blockchain, artificial intelligence (AI) and satellite technology provide significant opportunities within all aspects of the investment value chain. Firms that fail to adapt risk losing their competitive edge and market share to more disruptive and efficient firms.

The Blueprint for Fintech Engagement and Onboarding demonstrates the positive impact FinTech could have industry-wide on efficiency, consumer outcomes, and resilience. It offers advice for both investment managers and FnTech firms to work together successfully, including clear engagement strategies, partnership advice and industry analysis.

Gillian Painter, Head of Membership and IA Engine, said: “Innovation is key to ensuring that we remain at the top of our game. Collaboration with FinTechs is the linchpin for fostering the kind of innovation firms need to thrive in this competitive and evolving environment. Engine’s latest Blueprint offers a holistic understanding how investment managers and solution providers can work together to ensure that the UK maintains its position as a leading global hub for both innovation and asset management.”

The whitepaper was created in collaboration with 28 investment management firms that sit on Engine’s Advisory Panel as well as firms from Engine’s FinTech Growth Panel. It uses the real-world experiences of those at the forefront of each sector to provide a holistic overview of how they can best work together and deliver tangible benefits across the industry.

Source: IA

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