Talent and community
The mature financial sector and thriving fintech landscape, supported by high tertiary education levels, create access to a strong talent pool. The government, through the global talent visa, has encouraged global fintech leaders and talent to come to the UK and help grow the sector that contributes $13.4bn and more than 76,000 jobs to the economy.
In 2019, the Department for International Trade confirmed that 42 per cent of fintech workers in the UK are from overseas, demonstrating that the sector attracts the best and brightest to the UK.
The UK also ranks highly for entrepreneurship in the Global Entrepreneurship Monitor, culturally more aligned to the US than Europe, with 402,000 new businesses registered in the first half of 2022, an increase of 18 per cent on 2021.
Adoption
Another factor underpinning the fintech industry is the openness of consumers to adopt digital solutions. The UK boasts one of the highest fintech adoption rates in the world. Revolut has reached 20mn customers, up from 2mn in 2018, while Starling Bank is approaching 3mn users.
From a B2B perspective, 82 per cent of incumbents expect to increase fintech partnerships in the next three to five years, according to the Department for International Trade.
Established firms are increasingly recognising that fintech is developing capabilities required to thrive in the modern dynamic and meet customer expectation. Fintech has become financial services and the model is just how we either do, or aspire to do, business.
Thus, it has created an environment for fintech firms to explore B2B relationships to augment the capabilities of large, established organisations, while simultaneously driving investment or acquisition.
The infrastructure, talent, capital, and regulatory environment makes the UK a strong place for fintech.
The Kalifa Review confirmed that fintech is no longer a niche within financial services. It is a permanent, technological revolution that is changing the way we do finance.
The report sets out a plan and demonstrates an understanding of the growing importance and value of the UK fintech sector, while reaffirming commitment to its long-term development and maintaining the UK as the place to be.
Jonathan Warren is head of innovation at Altus Consulting
