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UK and London ‘world’s leading FinTech hub’ as sector booms

The UK is the world’s leading financial technology hub according to a report commissioned by the Treasury.

Released to coincide with Fintech Week 2016, UK FinTech: On the cutting edge compared the UK against six other FinTech hubs, including Hong Kong, Silicon Valley and New York, on four criteria: the availability of talented staff, access to investment, the nature of government and regulatory policy, and the demand for FinTech services.

Driven by London’s thriving FinTech scene, the report found that the UK’s deep talent pool, strong availability of capital for investment in fintech startups, supportive government policy towards, and high-demand from clients in London’s world-leading financial services sector all contributed to its first place ranking.

With an estimated worth of £6.6bn to the UK economy, and renewed efforts by the government to encourage FinTech growth, it looks like the sector can only go from strength-to-strength in the coming years.

In light of the report’s findings, Chancellor George Osborne commented: “In 2014 I said I wanted Britain to be the global capital of FinTech. This report says that we have delivered exactly that: we have the most supportive tax and regulatory regimes in the world for FinTech, and we have the world’s leading FinTech ecosystem.

“But we’re not going to rest on our laurels. I know that we need to do more if we want to maintain this position, and so I welcome the report’s recommendations.

“We are defining the future of global banking right here in the UK. This is all part of our long term plan to cement Britain’s position as the centre of global finance.”

The report’s release also coincided with the release of figures by Innovate Finance, a not for profit FinTech membership organisation, which estimated that UK investment in the sector rose by 35% last year to $901m (£646m)

Ismail Ahmed, Chief Executive Officer and Founder of WorldRemit, whose firm recently raised a further $45m (£31m) of investment, believes the figures are a testament to the UK’s FinTech credentials.

He commented: “The headline figure of nearly $1b investment in Fintech is impressive. Even more impressive is the nature of the companies that are growing as a result.

“UK Fintech is serving global audiences, promoting financial inclusion, modernising infrastructure and enabling new business through innovative lending models.

“Reassuringly, we are doing serious business here in the UK. There is an absence of the frivolity that sometimes characterises a burgeoning tech scene, and I have no doubt, for the most part, that $1bn was very shrewdly invested.”

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