From AI-driven innovation and regulatory challenges to the ongoing rise of Open Banking and the growth of personalised lending solutions, this insightful discussion offers a fascinating glimpse into the future of financial technology.
Participants:
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Julian Wells - Director at Whitecap Consulting
Julian is a strategy consultant focused primarily on the financial services, fintech, legaltech and professional services industries.
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Lee Stretton - Fintech Expert
Lee has over 20 years' experience in tech and fintech overseeing technology, product and data innovation amassing a wealth of expertise in software development, regulations, operations, and scaling businesses .
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David Gardner - Partner & Head of Fintech at TLT Solicitors
David is recognised as a leading Technology and Fintech lawyer in the major legal directories. He is an authority on technology-driven procurement, outsourcing and digital transformation, with a particular focus on clients in the Financial Services and Digital sectors.
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Kimberley Waldron - Managing Director at Started PR
A veritable trailblazer for women in fintech, Kimberley Waldron has spearheaded a pioneering public relations agency for over 15 years.
Moderator:
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Ryan Woods - Host at Get Started Podcast
Ryan is the host of the Get Started Podcast and Senior Content Strategist at Started
PR, a seasoned expert in B2B PR with nearly a decade of experience.
Ryan Woods: Hello everyone, and welcome to the Pro Manchester Fintech Committee roundtable. Today, we’ll be discussing the biggest trends of the past year and your predictions for 2025. So, without further ado, let’s get started. To begin, could you share what you think was the biggest fintech trend of 2024?
David Gardner: I’ll kick off with the obvious; the rise of generative AI, which continues to reshape fintech, sparked by the launch of ChatGPT two years ago. While its potential for efficiency and innovation is undeniable, adoption remains uneven, with some embracing it wholeheartedly and others proceeding cautiously. Even the most risk-averse companies are beginning to recognise its value. However, those moving quickly must prioritise ethical and responsible innovation. Transparency, fairness, and accountability are essential to ensure generative AI enhances trust and delivers value without exposing organisations to unnecessary risks.
Julian Wells: A key takeaway for me is that while the industry continues to make progress with Open Banking adoption and key use cases like account-to-account payments, this progress is tempered by frustration over the pace of adoption and its impact on the UK’s global competitive position. This feeling was heightened following an announcement from the United States recently, which confirmed that the Consumer Financial Protection Bureau (CFPB) had finalised the Personal Financial Data Rights rule, which it said moves the US closer to “a competitive, safe, secure, and reliable” Open Banking ecosystem. Back in the UK, the recent publication of the National Payments Vision does seem to have been warmly welcomed, so hopefully we’re moving in the right direction.
David Gardner: Good point. After years of live use, I think we can say Open Banking has proven itself as a reliable technical foundation for fintech and payments. However, in 2025, it will be interesting to see if this remains a priority as the new UK Government outlines its financial services agenda in the coming months. Personally, I anticipate continued government support and further progress towards an Open Finance future, but let’s see.
I think the broader macroeconomic and political landscape has contributed to what Julian mentions. This climate has created greater uncertainty, caution, and cost pressures throughout 2024. In turn, this has potentially slowed the pace of innovation in fintech. For regulated institutions, the sheer volume of compliance demands, from Consumer Duty and Operational Resilience to AI regulation and Open Banking governance changes, has led to regulatory fatigue and cognitive overload.
Kimberley Waldron: I’d agree with that. Let’s be honest, it’s not only an issue that’s related to Open Banking. This year clearly showed that we’re living in a new era of compliance. Throughout 2024, the fintech sector has faced intensified regulatory scrutiny, particularly concerning Know Your Business (KYB) compliance. Regulators have looked to enforce stricter measures to ensure that fintech companies adhere to things like anti-money laundering (AML) standards.
Recent actions, such as the Financial Conduct Authority’s (FCA) £16.7 million fine imposed on Metro Bank for inadequate money laundering controls, have underscored the seriousness with which authorities are addressing these issues. It’s become clear that these businesses can no longer afford to overlook these risks.
Lee Stretton: For me it’s the automation of consumer credit processes, which has continued to accelerate throughout 2024. Nearly all credit applications are now completed online, with real-time credit decisioning firmly established as the standard approach for lenders and credit card issuers to meet consumer demand for speed and convenience.
This year, we’ve also seen a growing number of lenders leveraging AI and machine learning (ML) to further automate underwriting decisions. While these technologies have been the hallmark of agile, fintech-style lenders in recent years, their adoption by traditional lenders and high street banks has become more widely accepted in 2024.
Ryan Woods: It’s clear there’s consensus that the rise of AI, increased automation, and a heightened focus on compliance have been some of the defining trends of the past year. Do we expect these themes to continue shaping 2025, or are there new trends on the horizon that will take centre stage?
Lee Stretton: Personally, I think this new age of compliance is only just beginning. As Kimberley mentioned, this is a trend that’s really picked up steam in the past year or so, but it will continue to impact fintech in 2025 in line with growing concerns around security. As cyber threats become more sophisticated, lenders will need to prioritise robust security measures to protect consumer data in 2025. Advancements in biometric authentication, enhanced standards of multi-factor authentication, and the adoption of blockchain technology could become standard practices for securing transactions and preventing fraud, giving consumers greater confidence in their credit interactions.
Kimberley Waldron: Just to add to that, if the past year has taught us anything it’s that fintech companies, as well as more traditional financial institutions must prioritise robust KYB procedures to mitigate risks and avoid substantial penalties.
Julian Wells: I’m excited for the introduction of commercial Variable Recurring Payments (VRPs) to the Open Banking market. With a commercial VRP it will be possible to authorise a bank account with pre-approved parameters, such as the total amount that can be spent per month and a maximum transaction size. This will be a huge benefit for consumers and businesses in making and receiving payments, because the process will be seamless and once these parameters have been agreed, subsequent transactions can be accepted with one click.
Lee Stretton: I’m equally enthused about the rise of more personalised lending solutions. With the rise of big data analytics, lenders can offer personalised credit products tailored to individual consumer needs. By 2025, consumers can expect credit offers that take into account their financial history, spending habits, and even social factors. This personalisation will result in more competitive interest rates and terms, fostering greater consumer loyalty and satisfaction, as well as the development of new types of financial products.
David Gardner: I believe operational resilience will become an even bigger focus for fintech and financial institutions in the next year as critical dates and deadlines approach in the UK and the EU. The EU’s Digital Operational Resilience Act (DORA) will come into full effect, establishing harmonised standards for managing IT risks across financial services. In the UK, regulators will intensify their oversight of Operational Resilience and Critical Third Parties, with the deadline for regulated firms to complete important business service mapping and impact tolerance testing by the end of March 2025.
Kimberley Waldron: Personally, I’m expecting to see a significant rise in fintech initial public offerings (IPOs), with many occurring in the UK. This surge is likely to be driven, in part, by the London Stock Exchange’s (LSE) recent reforms, which aim to simplify the listing process and enhance the UK’s attractiveness as a destination for public listings.
These changes are expected to encourage a diverse range of fintech companies, including emerging startups and mid-sized enterprises, to go public. The big question, however, is whether these reforms will be enough to convince Revolut, widely anticipated to have one of the biggest IPOs in history to list in London.
Regardless, the anticipated influx of IPOs reflects the sector’s maturity and the growing investor confidence in fintech innovations. This trend is likely to inject fresh dynamism into the UK’s financial markets, offering investors a broader spectrum of opportunities within the fintech landscape, which is great news for all.
Ryan Woods: It certainly sounds like we’re in for a blockbuster year in fintech. Thank you all for your participation today—it’s been fantastic to hear your thoughts on these topics, which I’m sure will provide valuable insight to the broader Pro Manchester community.
Summary
The Pro-Manchester roundtable hosted some of fintech’s brightest minds for a lively discussion wrapping up the key trends seen across the past year, and offering some predictions for the year (and years) ahead.
The panel, presented by Ryan Woods, host of the Get Started Podcast drew insights from Julian Wells, current Director at Whitecap Consulting, who provided expert analysis on how new regulations could impact businesses over the next 12 months.
The panel also leveraged Lee Stretton’s 20+ years of experience in overseeing technology, product and data innovation across fintech and tech to discuss what’s next for these important sectors as they reach new stages of maturation.
In addition, the panel features David Gardner, Partner & Head of Fintech at TLT Solicitors who gives his takes on some of the biggest trends affecting these spaces as we move into 2025 and beyond.
Finally, the panel includes the thoughts of Kimberley Waldron, who shared her perspectives as a trailblazing female founder in the space. Together, the panel provides a comprehensive and insightful blend of commentary that will be of great value to your audience.
Key trends cited include the growth of Open Banking, the transformative impact of generative AI solutions within these domains, and the increasing imperative for fintech and tech operators to safeguard end-users against fraud.
Moreover, the participants provided their collective takes on expectations for the forthcoming year, including the likely rise of fintech IPOs and how this could positively impact investor confidence in the field moving forward.