How Fintech Banks are Taking Over the UK Financial Sectors
On May 6 2021, Fineco Bank announced the availability of the AXA Investment Managers fund (AXA IM) in its trading platform. It was a big step by Fineco Bank, which strengthened their ESG offering with the addition of a responsible asset manager in their long list of offers.
The picture of the UK banking sector, however, is not as rosy all around. While the advanced, tech-savvy online banks are thriving, the traditional UK banks are struggling. Just a couple of months ago, Santander Bank announced that they would be closing down 111 branches across the UK. Ironically, the branch closures may well be a good thing, with the banks promising to focus more on technological innovations and online services.
What’s driving this hugely differential fate?
For centuries, the investment services of the big UK banks have been regarded as the most trustworthy financial institutions. Both investors and savers poured their money into the traditional banks, with the expectation of world-leading wealth management services. However, due to the huge technological advancement in the financial sectors, these big banks have fallen behind by quite a distance. They still manage the biggest funds across their mammoth service offerings. But they are no longer the most attractive or the most convenient banking solution for UK investors.
There are a host of reasons behind this decline in perception. Failing to innovate radical services is certainly one of the most important ones. There is also a lack of accessibility, lack of convenience, huge overhead costs and commissions, etc. For example, Fineco Bank, in comparison with other UK brokers or trading platforms, offers commission-free trading on a host of assets and financial instruments. They also have so many advanced features in their greatly accessible platform that it’s a no-brainer for a budding investor.
The Advantage of a Fintech Bank
If you think about Fineco you may struggle to find the right financial term to categorize it. Is it a bank? An online broker? A trading platform? The correct answer is perhaps it is a bit of all of these things.
You see, unlike the traditional UK brokers, Fineco Bank offers a single-account solution for trading, investments, and banking services. Therefore, your personal account can double up as your trading account. It can also operate with multiple currencies, saving you huge costs in exchange rates. Offering a one-stop solution in its advanced trading platform, an account holder can keep an eye on real-time price movements, keep updated on the latest news, and trade on assets from all around the world. Need to make a payment in the meantime? It’s just a few fingertips away on the same one-stop platform.
Can you expect any of these features from any of your traditional financial brokers? Even if you can, they are sure to charge a huge commission. So, it’s no wonder then, that the traditional UK brokers are losing grounds so fast!