The UK now accounts for 10 per cent of the global financial technology (fintech) market, a major study has revealed.
The finding forms part of the Government’s new independent review highlighting how the sector can be supported to grow even stronger.
According to the latest statistics, the UK fintech sector now accounts for over 10 per cent of the entire international market and is worth an estimated £11 billion to the economy annually.
Investment into UK fintech, meanwhile, reached $4.1 billion (£2.96 billion) in 2020 – more than the “next four European countries combined”.
But the review, led by Ron Kalifa, chairman of Network International and former CEO of Worldpay, suggests more can be done to boost the British fintech sector.
Finding that the UK is at a “pivotal moment”, the research sets out a new strategy aiming to “put the UK at the top of the global fintech league table” by creating more jobs, improving access to international trade, and supporting research and development.
The measures include:
- introducing a new ‘fintech scale up’ visa route for specialists from around the world
- implementing a ‘scale box’ to provide regulatory support for growing firms
- improving UK listings rules with free float reduction and dual class shares
- creating a £1 billion-pound fintech ‘growth fund’ to help firms grow independently; and
- establishing a private sector-led Centre for Finance, Innovation and Technology to support national coordination and growth in fintech across the UK.
Commenting on the review, Ron Kalifa OBE said: “Britain has a proud record of starting-up and scaling-up some of the best known fintech products, but we cannot rest on our laurels. The next powerhouses will not be created by accident.
“We must continue to nurture our start-up culture, but crucially we must also give our high growth firms the support to become global giants.”
Rishi Sunak, Chancellor of the Exchequer, added: “Fintech is one of the UK’s great success stories and will help us seize new opportunities around the world.
“We must now build on our global reputation for fostering innovative start-ups and ensure firms can access the talent, finance and support they need to scale up here in the UK.”
To access the independent review, please click here.
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