Technology has been the driving force of innovation and progress in the financial sector in recent years but the pandemic has pushed the fast-forward button for digitisation. Banks and financial institutions everywhere have needed to push for reforms in the way they perform their operations and deliver their services to improve efficiency and quality of service.
This has resulted in increased R&D and experimentation in artificial intelligence, automation, predictive analytics, exclusive digital banking, blockchain, service delivery platforms, 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 is transforming the way we do banking.
Who Qualifies?
If a 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:
- AI
- Big data
- Mobile or Retail banking
- Trading and commodities markets
- Peer-to-peer lending
- Crowdfunding
- Privacy, security, and authorisation
- Digital currencies, Digital wallets
- Stress testing
- Algorithms
- Hardware development
A Fintech success story
Our client was a Fintech start-up with the mission to bring savings potential to those currently excluded from building savings. Their vision was to help generate a savings pot for consumers by making simple changes to the way they already spend their money. Their innovative cashback platform connects SMEs to new and existing customers in ways previously not possible. End consumers benefit from building up savings as they spend automatically.
Their R&D project included the development of a cashback and rewards machine for open banking transactions. In order to reliably pay cashback, the client implemented a rule-driven matching algorithm allowing transaction strings to be matched based on confidence weighted rules. With the support of JJMK they claimed on the costs of research and investigative data to understand variability and patterns in the development of their algorithm.
We identified £120,000 of qualifying relief and the client was thankful for the level of service received:
JJMK Consultants were extremely knowledgeable and responsive throughout both the preparation, successful submission, and payment of our R&D Tax Credit claim. We look forward to working with them in the future.
For further guidance contact info@jjmkconsultants.co.uk