Technology has been the driving force of innovation and progress in the financial sector in recent years. From improving accessibility to figuring out new and better ways to serve customers, financial technologies have helped financial institutions enhance their efficiency and quality of service in innovative ways. And this trend is only expected to grow further with the extent of R&D and innovation happening in this evolving area. As digitisation has been fast-forwarded by the pandemic, banks, and financial institutions everywhere, have needed to push for reforms in the way they perform their operations and deliver their services. This is has resulted in increased R&D and experimentation in artificial intelligence, automation, predictive analytics, exclusive digital banking, blockchain, service delivery platforms, and more. Some tech innovations that are driving R&D in the Fintech sector and are set to dominate the market are:
- Chatbots & Virtual Assistants
- Payment Gateways
- Quantum Computing
- Digital Banking
- Peer-to-Peer Transactions
- Security & Authentication
- Regulatory Compliance
R&D in Fintech
While financial institutions were slow and hesitant to embrace new technological advances in the past, firms today are much more receptive to changes and are happy to invest time and money into R&D of new technologies that can help them provide cost-effective, secure, and efficient service to their customers. Just like research and development in any other field, R&D in Fintech also occurs when there is a need to seek advance in technology or resolve a scientific or technological uncertainty. From data-driven algorithms and fast money transfer platforms to AI and Big Data, R&D in Fintech involves some of the most advanced technologies that can transform the way we do banking.
R&D Tax Credits and Fintech
Fintech is a constantly evolving sector, with innovation happening frequently and at various stages of financial operations and service delivery. Even so, many businesses within Fintech miss out on receiving vital funding from the government, as they are unclear on the eligibility of their R&D for getting R&D Tax relief. Many believe R&D Tax Credits are only meant for industries that conduct traditional R&D like healthcare and engineering and are not confident about their Fintech innovation qualifying for the same. The truth is, Fintech companies have just as much chance of receiving substantial cashback for their R&D as any other pharmaceutical or engineering company.
If your Fintech business has been involved in R&D associated with, but not limited to the following, it could be eligible to receive R&D Tax relief:
- Big data
- Mobile banking
- Trading and commodities markets
- Peer-to-peer lending
- Retail banking
- Privacy, security, and authorisation
- Digital currencies
- Digital wallets
- Stress testing
- Hardware development
Datafox has a team of R&D Tax experts that can help you navigate the claims process, identify all the qualifying opportunities, and deliver a successful claim that gets you the maximum potential pay-out for your innovation. Regardless of the complexity of your Fintech R&D, we can write an effective R&D Tax Credits claim that gets the desired results. To understand if your Fintech innovation qualifies for R&D Tax relief, contact our team and we’ll be happy to check your eligibility.