This week’s roundup will feature titles on closing brick-and-mortar stores, open banking and cash savings.. Join us and Unlimit BaaS’ Managing Director, Jovi Overo in the exploration of some of the biggest headlines of our industry.
- The UK loses 6,000 retail stores in 5 years, with the British Retail Consortium (BRC) calling for action to revive high streets. [source: Retail Insight Network]
The pandemic saw abrupt closures of brick-and-mortar stores which saw the migration to online stores or businesses closing all together. As shops reopened, we were faced with the cost of living crisis which continues to impact businesses and spending power among consumers. There are numerous conversations around whether the future of shopping will exist solely online due to changing demands and preferences of customers and a wider use of international shopping. We’re still in a phase of adaptation to new ways of shopping with evolving technology, so it will be interesting to see the steps taken at local levels to preserve physical stores. – Jovi
- Buy Now, Pay Later provider, Klarna has dropped its open banking brand, Klarna Kosma only a year after its launch. [source: Finextra]
Open banking is rife and filtering through all financial ways of working, and so it was no surprise that Klarna also wanted to explore the space as it acquired Sofort in 2014. Open banking stayed true to its name and helped the BNPL giant to expand at speed to new markets and optimise in-house services. Through its success, Klarna has decided to move the brand under the Klarna corporate brand which will support payments, information collation, and data from multiple financial institutions and banks globally – which will in turn offer customers a better shopping experience that is convenient, safe and personalised. – Jovi
- The UK Financial Conduct Authority sets new rules and plans to boost cash saving interest rates. [source: The Paypers]
The plans by the FCA are robust to say the least, but will also encourage better savings rates and communication between establishments, such as banks, financial institutions and building societies, and their customers The improvement on savings rates will allow for better financial control for customers, but the question is whether this action is too late as we have seen consumers turning to investment opportunities and digital currencies, as seen with cryptocurrencies, NFTs, and numerous investment platforms. Overall, it appears that the new rules will bring opportunity for great change that will benefit consumers, and encourage fairer value from companies – something that is always welcomed in our growing consumerist society. – Jovi
See you next week, back in the blog for your next weekly news roundup.