The UK is a world leader in financial services innovation. London is the only city in Europe that ranks as one of the world’s top five FinTech hubs3 and in 2018 the industry received $3.3bn of investment. FinTechs employ 76,500 people in the UK, and this figure is predicted to reach 105,500 by 2030.4
Over the last few years the UK FinTech industry has grown and evolved. It no longer refers uniquely to the activity of start-ups. It includes innovation by financial institutions and large technology companies, not to mention the range of firms participating in partnerships and joint ventures. The FinTech umbrella also covers a growing variety of sub-sectors including RegTech, WealthTech, PayTech and InsurTech.
Increasing collaboration between start-ups, scale-ups and large incumbents is another key feature of the market and is helping to create a complex and vibrant FinTech ecosystem. Fifty-six per cent of traditional financial institutions have technology-related disruption listed at the heart of their strategy, and 82% of financial incumbents expect to increase their FinTech partnerships over the next three to five years.5 While recent challenges may cause some to revisit their short-term strategies, in the long-term, FinTech still plays a vital role in the success of the entire financial sector and the economy as a whole.