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Innovation Spotlights

A series of reports navigating tomorrow’s financial landscape

"Welcome to the dynamic landscape of financial services. Perhaps now more than ever, the coming of age of several exciting technologies is reshaping both the needs and expectations of our customers and clients and how financial services can continue to add value. The next few years will see major shifts forward, empowering customers and opening new opportunities for entrepreneurs and financial institutions alike.

At Barclays, our belief in the transformative power of innovation remains as strong as ever. This series, written in collaboration with Rainmaking, provides a snapshot of what we see is driving innovation and some of the trends and opportunities that excite us. 'A view from the leading edge' is a beginning, setting the scene for an ongoing series of Innovation Spotlights that will dive deeper into the strategic opportunities we see for Barclays in partnership with the innovation ecosystem. The series is a reflection of our commitment to shaping a world-leading financial ecosystem that is resilient, inclusive and innovative so it can meet the evolving needs of our clients."

Kristen Bennie, Group Head of Innovation and Partnerships, Barclays

Drivers of change

  • Feeling the pinch

    Rising inflation, the cost-of-living crisis, and soaring interest rates have increased the challenge of accessing mortgages and funding. Everyone is feeling the pinch. Cash-strapped SME’s families and individuals are getting creative and resourceful. The age of plentiful venture funding is over, ushering in a new era of sustainable.

    The Money Charity

  • Everything GPT

    Large language models (LLM) are available to everyone. In the first half of 2023, nearly 18% of global venture funding was raised by AI and AI-related companies.2 A reported 61%3 of office workers use AI daily to improve productivity, yet employers struggle with risk and governance. Explainable AI and regulatory frameworks are evolving to bridge the gap and will unlock mass adoption. We are just scratching the surface of what is to come.

    2 Crunchbase
    3  “AI Study”, Deloitte (August 2023)
    4 The Decoder

  • Playing catch up with digital expectations

    Digital is now a given. Today’s 60-year-olds were 28 when the first internet browser was introduced and 34 when Google was founded. Hybrid working is now the norm. GenZ’s have high levels of education, social awareness and value individual identities influencing what it takes to engage them successfully in the digital sphere.

    5  GOBankingRates

  • Regulatory catalysts

    New regulatory developments are changing the game: Consumer Duty in the UK, the EU Green Deal and the New York Attorney General focus on account takeover. 6 Each regulator is making their mark—the UK Treasury with the digital pound 7 and the EU’s push on sustainability. These developments are a powerful catalyst for innovation towards better consumer outcomes.

    6 CNBC
    7 Bank of England
    8 FCA

  • Strength in numbers

    Ecosystem strategies are in vogue. Joining forces can unlock new possibilities, better products and drive improved retention. Strength also lies in diversity with new partnership modes incorporating banks, fintechs and other solution providers evolving and expanding into new domains.

    9  Insider

 

A view from the leading edge

From payments to banking to wealth management, innovation is moving along at pace, fueled by an evolving, digitally savvy customer base. But that doesn’t mean that fintech's are augmenting customer experiences alone. Fintech is also leading the charge on the ‘big picture’, with solutions for climate change, ESG reporting, inclusive banking and other societal value-adds that deliver greater transparency, security and a more level playing field for all. In this first report of the Innovation Spotlight Series we explore themes and trends within the world of fintech, and how they can impact all our lives.

Financial products for changing needs

Rewards | Personalisation | Sustainable Finance

When finance meets real life

Embedded Finance | AI | Financial Wellbeing

Building the bank of the future

Advance Technologies | Fraud Tech | Digital Ecosystems