Fintech in the UK has grown at a breakneck pace.
In 2010, it accounted for just 4 percent of corporate capital funding in the UK. A decade later that figure has risen to 28%, with a record of $ 4.9 billion in capital funding in the UK in 2019 – a year-over-year improvement of more than a third .
There is no doubt that the UK is a world leader in FinTech – a truth that doesn’t misplace just about all of our global companions once I interact with them. However, for this to be the source of future progress that we all know it can be, we need to ensure that entrepreneurs can thrive, grow internationally, and deliver on fintech’s promise of delivering prosperity to people. all elements of the nation.
Learn more: DEBATE: With the financial system under such pressure, should the new fintech regulations be suspended?
I therefore warmly welcome the launch by the Treasury of an impartial assessment of the UK FinTech sector, for which the Metropolis of London and Innovate Finance will act as joint secretariat.
Fintech arose out of a need for innovation in the money market sector after the 2008 global currency crash. It arose out of a need to change the dynamics of commerce and offer high selection for businesses and companies. buyers.
Britons have steadily taken fintech innovation to the bowels of their lives, with the UK fintech adoption price now at 71% – well above the global common price of 64%. Thanks to the comparability, this far exceeds the speed of various key markets such as the United States (46 percent) and Japan (34 percent). Lockdown and our increasing adoption of distant applied sciences have helped to further accentuate this development.
There are two key conclusions I draw from all of this.
The main one, perhaps clearly, is that the fintech engine will be an important engine for the UK money market sector – the second largest exporter of money market companies in the world – in supporting the revitalization of the global financial system. Will likely be a space for significant progress in the years to come.
The second point to remember is that fintech in the UK has come of age. It has become an integral part of the business of British money companies and is here to stay. We have now done a fantastic job supporting startups as they emerge, but we are actually seeing more mainstream establishments and broader stakeholders putting more emphasis on fintech as well.
As we cross that threshold, it is time to reflect on how we have developed and what changes we would like in the long term. There is a need to start framing this debate and, in this regard, I encourage readers to check out our new joint report with Innovate Finance and EY. It presents some concerns for the future of the sector in a global context, such as removing remaining hurdles for startups, prioritizing entry into expertise, and persevering to innovate within the regulatory house.
I have a feeling that these discussions and the impartial assessment by the federal government will help sow the seeds for the next step in fintech success. I ask everyone in the UK money market ecosystem to have their say and play their half.
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