UK strengthens role as fintech leader

More than 70% of analysed fintechs offer financing solutions for SMEs not covered by incumbents due to a too high cost-to-serve. New players also show specialisation to support underserved niches, such as freelancers and online merchants.

Their investment in open digital platforms that integrate with external management systems also enables further disintermediation from banks, the report concluded.

Alessandro Carretta (pictured), secretary general of Assifact, said: “Italian banks and factoring companies need to improve their profitability by strengthening and evolving their operating and business model through digital transformation, service quality improvement and new products and services to customer segments not yet covered, either via internal development or the activation of partnerships.”

Stephen Pegge, commercial finance managing director at UK Finance, added: “There continue to be successful and competitive banks and traditional specialist firms that have longstanding relationships with clients but innovation in products and new competitors mean there is now more choice than ever before.”