Why Big Banks are in Trouble in Great Britain

The investment atmosphere in British online financing for new businesses recorded an all time high in 2017 of nearly 20 billion pounds (27 billion dollars.) This very worrying to traditional banking institutions in London, such as Barclays and The Bank of London. It means, among other things, that traditional financing avenues for startups are in danger of being shut down to a trickle. The rise of digital transaction technology and secure mobile banking means it’s easy to bypass the highly regulated and somewhat hidebound startup funds controlled by banks and other well-established investment firms throughout England, Scotland, and Wales. Competitors online include Monzo and the overseas exchange service Revolut. They and their colleagues have shown themselves to be highly serviceable to any number of startup enterprises, especially in the financial technology sector — often abbreviated as fintech. Worldwide investment in just this one sector soared to over 19 billion pounds (27 billion dollars) during 2017.


Deal values skyrocketed in Great Britain to an astounding 3.4 billion dollars. At the same time the United States saw the same index surge higher than eleven billion dollars. Quite a bit of that investment money comes from some newer investment flows that originate in places like Russia, China, and the Middle East. In another financial surprise, Accenture Consultancy LTD says that even India, which has had plenty of monetary ups and down during the past few years, saw approximately five times as much startup investment in 2017 than in any previous year — coming in at around 2 billion dollars.


In Great Britain the digital insurance giant BGL Group gathered 900 million dollars in funding. It’s nearest competitor, TransferWise, took in 280 million dollars. In two separate efforts Monzo brought together 93 million pounds, and Revolut reported net acquisitions totaling 66 million dollars.