May 28 2016.

Over recent years, we have seen the FinTech landscape transform dramatically as the sector evolves to pose a real challenge to the UK banking market.

In 2012, it was clear that traditional banks were under pressure to rebuild capital buffers and were unable to provide SMEs with the finance they needed. A move towards centralisation and continued dependence on clunky legacy systems meant that banks weren't best placed to serve this market. Now, a range of alternative lenders have moved into the space, offering a competitive advantage over traditional incumbents by using financial technology to make more informed lending decisions and provide seamless, flexible access to finance.

While these do compete with the traditional players in the financial services industry, that’s not to say young innovators will replace them - the sheer size and scale of the big banks' business lending is going to continue to dominate the sector. However, alternative lenders embracing FinTech will increase market share with a faster and more customer-focused service for SMEs looking for the finance they need to invest and grow.

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