Increased R&D expenditure comes as the fintech revolution continues to gather pace and traditional players invest heavily to cater to changing consumer demand, according to research from Glint Pay, the London-based fintech that allows customers to use gold as an everyday global currency. The annual R&D expenditure has also risen by 124% over the last 10 years, up from just £308m in 2010. Traditional financial services institutions can no longer simply rely on their heritage to attract and keep hold of customers. We’ve seen dozens of disruptors enter the sector in recent years and completely overhaul the industry for the better. Rising R&D expenditure suggests the big players have taken notice. Even the most established financial institutions are looking inward to ensure they appeal to increasingly discerning consumers demanding a world-class customer experience with an innovative, secure and user-friendly mobile function.
Consumer appetite for the huge range of products and models now available on the market suggests that the sector has been in real need of an overhaul for years. The success of fintechs offering innovative solutions to historic-low interest rates and fluctuating markets should give the next generation of fledging FS startups the confidence they need to invest in their offering. R&D expenditure in software development across all sectors has risen by 9% in just a year, from £1,512m in 2018 to £1,647m last year. Rise is indicative of the emphasis that all companies, not just within financial services, are heavily focused on improving mobile apps in order to cement market share. The financial services sector is so fast-moving that it is absolutely vital that all companies ensure that they are constantly enhancing their platforms to give them a competitive edge in an increasingly crowded and innovative market.