The Government has this week kicked off its ‘Independent Strategic Review of UK Fintech’, indicating a show of support to a sector which has displayed strong performance on the global stage over the past few years. Led by Ron Khalifa OBE, former Chief Executive Officer of payments provider Worldpay, the review seeks to identify new growth areas across regulation, industry and policy to best support what is quickly becoming one of the UK’s flagship industries. The review has been seen by some as a show of faith in an industry which has real potential to underpin an economic recovery in the aftermath the economic devastation caused by Covid-19.
Companies with billion-dollar valuations such as Monzo and Revolut have emerged from the UK Fintech scene, showing the nation to be fertile ground for development of and investment in Fintech ventures. The Department for International Trade estimated that there were more than 1600 Fintech firms in the UK, also forecasting that this would more than double by 2030.
You may have seen a gradual and subtle switch to Fintech on a day-to-day basis. For example, contactless payments were adopted by Transport for London in 2012, and today it has become a preferred option for payment for many vendors, owing to its ease of use and rapid transaction time. We forecast that the switch to contactless will only accelerate going forward with the backdrop of the pandemic, allowing payments to be made with limited physical contact with people and objects. HM Treasury estimates that as of 2019, the UK’s Fintech adoption rate is at 42%, outperforming the global average of 33%.
The sector as a whole is worth an estimated £7 billion to the UK economy, employing around 60,000 people in many ‘hotspots’ up and down the country. The industry has also attracted a significant amount of investment, with £4.1bn ($5.2bn) of venture capital funding Fintech ventures in 2019. The review as a whole is focused on ‘supercharging’ development in established areas of Fintech such as financial and banking applications, as well as more emerging areas such as Regtech, Legaltech and Insuretech, all of which aim to use technology and data to break down barriers and complexities within their given areas of specialty.
As for Yielders, we started our journey at Level39 in One Canada Square, one of the world’s most prominent development hubs for cybersecurity, fintech, artificial intelligence and blockchain. As per the aims of the company, ‘Level39 sets itself apart from the other major tech communities in London through its ability to elevate its businesses ahead of a heavily crowded tech sector and create a community of leading industry innovators.’ As a company, Yielders continues to partner with leading Fintech accelerators and organisations all over the world to ensure we are kept up to date with regulatory changes to the Fintech landscape, and are able to keep abreast of the fast-paced changes within the ecosystem.
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