24 Jun 2024

Fintech news: Banking hubs, Sainsbury’s bank, and gamified trading

In the build-up to the general election, the financial and fintech sectors in Britain have been moving at their usual breakneck speed. We’ve seen Labour pledging to open hundreds of banking hubs across the country, Sainsbury’s selling its banking branch, and the FCA highlight the dangers of gamification in trading apps.

For the latest and greatest stories from the world of finance and fintech, look no further than Spreckley’s news round-up.

Labour pledges to open 350 banking hubs

With 6000 high-street banking branches closing since 2015, many have been left without access to traditional brick and mortar access to their finances. This has left many concerned that face-to-face customer service with their bank will be a thing of the past.

To quell these concerns, Labour has pledged to open 350 banking hubs across the span of 5 years. Rachel Reeves, the Shadow Chancellor of the Exchequer, wants to prevent towns across the UK from becoming “cash deserts”.

Catch up on the full story here:

Labour Party pledges to open 350 shared banking hubs


NatWest acquires Sainsbury’s bank

Sainsbury’s has officially ended its foray into the financial sector in a move that will see NatWest acquire 1 million customer accounts from the retail giant. This move comes just months after key competitor Tesco sold its bank branch to Barclays, signaling a pattern of retailers streamlining their focus into pure-play retail.

For NatWest, this acquisition will see its assets rise by $3.2 billion, following a strong start to the year for the bank.

Catch up on the full story here:

Sainsbury’s to Sell Banking Division to NatWest


FCA tackles gamification of trading apps

It’s been a busy year for the FCA, launching Consumer Duty at the end of July 2023 and continuing to strive to make financial services a fairer and more efficient industry. In June, the regulator turned its focus to trading apps, conducting an experiment that revealed the dangers of gamification.

After building an experimental trading app platform, the FCA found that push notifications increased trades by 11% and points and prize draws led to a 12% rise. Gamification is particularly effective for those with lower financial literacy.

Catch up on the full story here:

Trading app gamification can increase risk taking – FCA