UK labelled top three global destination for fintech firms
THE UK has been named a top destination for global fintech companies that are considering raising funds and expanding internationally, despite Continental Europe’s latest efforts to become an international hub.
More than 400 fintech companies from eight countries put the UK as the third best place for businesses looking to expand internationally, behind only the US and China, according to a report released on Wednesday by the London Stock Exchange Group and financial industry body TheCityUK.
“The cross-border ambitions of innovative fintechs are transforming the global financial services sector,” Robert Barnes, global head of primary markets and chief executive of Turquoise, part of the London Stock Exchange Group ,said.
“But in order to thrive, these innovators need access to long term growth capital and a supportive global regulatory environment. The UK offers both.”
Read more: Europe looks to take fintech crown with pan-EU crowdfunding rules
The report, called Finance for Fintech and based on an independent survey by YouGov, also found that 72 per cent of fintechs plan to expand into new countries, with companies expecting to grow revenues by an average of 80 per cent over the next three years.
Hopes are even higher in the UK, with fintech companies expecting to grow by 88 per cent in the same period.
Growth requires funding, and 35 per cent of survey respondents from Australia, Germany, Hong Kong, Israel, Singapore, Turkey, the UK and the US, said that raising finance is their top priority.
Compared with their peers, UK fintech companies see the process of raising money through public markets as more straightforward with fewer barriers.
“The UK has positioned itself at the forefront of the fintech revolution,” Marcus Scott, chief operating officer of TheCityUK, said.
“Its success is underpinned by the strength and heritage of the UK’s world-leading financial and related professional services ecosystem, helping to make Britain one of the best places in the world to start, grow and scale a fintech company.”
Read more: UK fintech funding rises as Brexit unease softens
The report comes as competition with Europe heats up to be a regional fintech hub. Earlier this month, the European Commission announced a draft law to enable crowdfunding platforms far easier access to the entire EU.
“Global competition is fierce,” said Scott, “and it is incumbent on industry, government and regulators to remain agile and work collaboratively to ensure the UK maintains this leadership position into the future.”
The UK fintech sector adds £6.6bn to the economy each year, employing more than 60,000 people.
Read more: Chancellor sets outs commitment to UK fintech after Brexit
