Insights

Industry News 05/11/18

November 12, 2018

Reading time 3 minutes

Each week at Rokk we will be looking at the news stories from the world of software and app development in the digital marketplace. From technology developments to new market insights and trends; you can find the news in brief here.  

Digital Leaders 2019 study reveals most mobile UK companies

UK companies are making strides in digitisation however constant commitment is necessary to ensure success, according to a new report on the UK’s digital leaders for 2019. Tech consultancy firm BearingPoint evaluated the digital maturity of 72 leading UK businesses, looking at their use of the latest digital tools from social media to e-commerce and mobile. In the latter category, businesses are showing effective use of mobile channels to support customers as they adapt to reflect the preferences of on-the-go consumers. Banks are leading the way as the most mobile dimensional industry, closely followed by Automotive, Telecom and Retail. The majority of the top 5 mobile companies are Financial Services with Lloyds Bank Retail, NatWest Retail and Halifax Retail all taking high spots alongside automotive business VW Group and retailer House of Fraser.

Fintech Delivery Panel released to help fintechs work with banks

The Fintech Delivery Panel (FDP) is a new toolkit designed to assist fintechs on working with Financial Services organisations, created by the government as part of HM Treasury’s Fintech Sector Strategy, and with contribution from the UK’s leading banks. Released this week, the PAS 201:2018 is a free set of guidelines to facilitate collaboration between the new fintech players and the established financial powerhouses who have historically been “uncomfortable allies”, as the report notes. Misconceptions such as banks thinking fintechs lack awareness of regulatory challenges, or fintechs believing financial instructions are inflexible, have hindered effective partnerships yet as the FDP says this is changing with more traditional banks recognising the need for digital technologies to better serve customers.

Digital Services Tax faces further scrutiny from EU members

The EU’s proposal for a Digital Services Tax of 3% on the big tech players such as Facebook and Google was met with contention at Brussels on Tuesday. Ireland, Sweden and Denmark all voiced their concerns causing delays in achieving unanimous support from all EU members. The tax intends to give bricks-and-mortar companies fairer opportunity amidst the increasingly powerful and competitive internet firms who capitalise on user data and digital advertising. However, some financial ministers feel that the tax is targeting US firms. Meanwhile in the UK a Digital Services Tax has also been proposed which will raise a 2% levy on UK sales from the leading tech firms such as Google and Facebook. The levy will take effect in 2020 and is estimated to raise around £400 million.

Lloyds Bank creating 2,000 new roles as part of digital restructure

Lloyds Banking Group is increasing investment in its “digital banking products and services” which will include a radical restructuring of its workforce, cutting around 6,000 jobs but creating 8,000 new roles. This means there will be 2,000 new positions available for staff, with the bank assuring those employees who will be losing jobs that they will be supported with retraining and new role application. The drive on digital transformation is part of its efforts to meet demand from 21st century customers who want effortless online banking. Indeed, Lloyds Bank and others have closed physical branches recently as customers increasingly choose digital banking services for ease and convenience. Some of the innovative technology being implemented by Lloyds Bank, Halifax and Bank of Scotland includes Voice ID, whereby customers can use voiceprint technology to verify their accounts when telephone banking.