UK Banks Should Learn How To Innovate By Looking At Russian Financial Service Providers

In what many people will see as a significant surprise, the Russian bank model is considered as a role model for the future of UK financial services providers. Russian institutions have been embracing innovation, technology, and cybersecurity measures, outpacing the UK by quite the margin. This is an interesting train of thought, and advice that could prove useful for the United Kingdom in the post-Brexit era.

Russian Banks Are Becoming Role Models

In this day and age, the terms “Russia” and “role model” very rarely show up in the same sentence, but in the financial world, things are evolving at such a rapid pace that extreme measures need to be taken. During the 2016 Russian-British Business Forum event, it became apparent that UK fintech services providers should look closely at how their Russian counterparts go about their business.

To be more precise, Russia is putting a lot of effort into the growth of their technology sector, not just by adding more ITers and staffers, but also by paying close attention to cybersecurity. Additionally, Russian institutions are more keen to embrace innovative technology, in which they differ vastly from their UK partners.

Digital technologies and fintech are two driving factors for the future of banking and financial services. Institutions unwilling to innovate or even consider fintech collaboration will be left behind in the coming years, that much is certain. These profound changes will shake the core of the banking system, during which the weak hands will become irrelevant.

One could argue that Russian banks have a different mindset compared to their UK counterparts, and they would be absolutely right. Since the fall of the Soviet Union in the 90s, Russia has come to flourish during a time in which technology was the center of all attention. In fact, Russia has a few large internet banks, whereas the UK is far behind the curve in this regard.

Russian cybersecurity companies also have a proven track record of warding off major attacks. Despite this clear advantage in using these Russian tools, UK banks are rather hesitant to go ahead with this plan. Apparently, this has to do with the political relationship between both countries, which stands in the way of safeguarding customer funds.

In the end, it is apparent that the UK banks need to embrace innovation and new technologies. Being open to innovation is an absolute must to remain in a seat of power in the post-Brexit world. Unless things change in a dramatic fashion, it’s not looking great for the UK economy moving forward.

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