As the world’s fastest growing region for finech, investors can benefit from:
- a strong demand from a sophisticated market
- an excellent IT and transport infrastructure
- one of the largest pools of financial and entrepreneurial talent in the world
In 2015, the sector had a turnover of about 6.6 billion GBP in revenue and attracted about 524 million GBP in investment.
The 4 strongest performing areas are:
- payments, which currently attract a wide range of innovators
- platforms, particularly peer-to-peer lending, trading, personal wealth management and aggregators
- software for risk management, payments, asset management, capital markets, insurance and accounting
- data analytics such as credit reference, capital markets and insurance
There is ample room in the market for established providers and disruptive technologies. Many different sources of finance are available and the sector is well served by angel and private equity investors, accelerator and incubator schemes.
Status and enthusiasm drives demand
Demand for fintech in the UK is strong, driven by London’s status as the global capital of finance. This concentration of financial services activity means great opportunity for fintech solutions providers, particularly in the areas of:
UK consumers are early adopters, and are open to new, innovative models of service delivery. They spend much more on e-commerce than their equivalents in Germany, France and the USA. Consumer adoption of fintech is becoming mainstream. The EY fintech Adoption Index states that around 14% of digitally active consumers identify themselves as fintech users, rising to 25% in London.
Many small and medium enterprises (SMEs) have also adopted fintech solutions, mainly in alternative finance and payments.