According to a report produced for the HM Treasury last week, the UK FinTech sector generated more than £6bn in revenue in 2015 and employed a workforce of some 61,000 (second only to California’s 74,000). More people work in FinTech in the UK than in New York, Singapore, Hong Kong and Australia combined.
The report ranked Britain first amongst the world’s seven leading FinTech hubs (with California and New York following closely behind) having compared these markets against four key criteria: talent, capital, policy and demand.
Key takeaways from the report included:
- California dominates FinTech investment with approximately £3.6bn invested in 2015 despite the UK’s robust access to early-stage capital.
- The UK has a particularly good policy environment for FinTech, with the most supportive regulatory regime.
- There is strong competition emerging from FinTech hubs that are implementing progressive initiatives and specialising in disruptive technologies.
The report attributes Britain’s number one ranking to a deep talent pool, the strong availability for capital investment in FinTech start-ups and, in a bid to ensure that the UK cements its position as the world’s leading FinTech system, the report makes a number of recommendations which have so far been welcomed by the government.
- Creation of a FinTech “delivery body” to drive implementation of initiatives.
- Building FinTech “bridges” to support international expansion.
- Establishing regional Centres of Excellence in the UK to create an active collaboration network.