In only four years, a few hundred FinTech geniuses outperformed the entire national economy of France A five-year period was enough for FinTech companies to become a major focus around London’s Shoreditch area. FinTech startups in London have outperformed the entire national economy of the entire country of France, with startups which have been established over the past four years now totaling over £50 billion in value across all sectors of financial services.
Being the highest-performing part of the UK’s tech industry, FinTech contributes more than £130bn to the economy every year. London startups dominated the UK’s intake in the first 6 months, representing 90% of all investment flowing into the FinTech sector.
FinTech companies have disrupted the financial services sector by providing new services and product propositions, with better customer engagement, better quality services and a disruptive force to the extent that attracting such vast investment is no difficult feat.
In Britain, the entire infrastructure, capital base and talent availability is absolutely given to FinTech development, with the government encouraging it. This is clear in how universities across the UK have specific hubs dedicated to giving FinTech entrepreneurs’ space and networking opportunities, even during their educational years.
In a survey of 168 respondents within large financial institutions around the world conducted by professional services consultancy KPMG, 57% identified FinTechs as ‘the greatest’ source of disruption, ahead of regulatory pressure and other factors such as cyber security.
Meanwhile, financial institutions also view FinTechs as sources of innovation. Over 51% of the respondents to the aforementioned KPMG survey in 2017 ranked FinTechs as the top source of innovation, with 21% ranking it as the second most important source.
Today, statistics from London-based consultancy Innovate Finance revealed investment in the first half of 2019 was up 45% compared to the same period last year, and nearly doubled the inflows recorded in the second half of 2018.
The number of deals declined 30%, indicating a move towards larger and later-stage rounds as the sector moves towards maturity.
The UK scored 2019’s largest FinTech funding round in the world so far, when Softbank invested $800m in supply chain finance lender Greensill. The Japanese mega-investor’s other UK FinTech bet, a $440m round for savings challenger bank Oaknorth, was the third largest globally.
UK, London, entrepreneurs, KPMG, Innovate Finance, Greensill, Oaknorth, Softbank