UPDATE 2-Britain's CYBG bets on fintech as open banking looms

UPDATE 2-Britain's CYBG bets on fintech as open banking looms
From Reuters - November 21, 2017

* FY underlying PBT jumps 33 pct to 293 mln stg

* Investing in digital platform to tackle open banking, competition

* To pay maiden dividend of 1 pence per share (Adds CEO comments, details)

By Noor Zainab Hussain

Nov 21 (Reuters) - Britains CYBG Plc said on Tuesday its was focusing its 350 million pound ($463 million) investment budget on digital banking services, helping it get ready for the so-called open banking revolution and compete with the countrys Big Five lenders.

CYBG, which made its London debut last year after it was spun off by National Australia Bank, also posted a 33 percent increase in full-year underlying profit before tax.

The company, however, said the lending market would remain competitive in 2018 and that it would face pricing pressure in its mortgage and unsecured personal loan business, sending its shares down about 2 percent.

Britains nine biggest banks are getting ready for open banking, which would involve sharing customers data with third parties that can then use it to build or recommend better suited products.

We have been building our technology with very much a view that there is an open marketplace type model coming ... a platform that allows us to do fintech activity in a fraction of the time of the big guys, CEO David Duffy told Reuters.


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