UK FINTECHS took a greater share of KPMG’s Fintech100 list this year, partly due to the growth of neo banks.
12 UK firms feature in the accountancy giant’s list of fintechs transforming financial services, compared to eight in 2017, moving the UK from fourth to second place worldwide.
This puts the UK in second place behind the US, which has 18 fintechs placed. In third place is China with 11 fintechs on the list.
The Fintech100 is divided into two sub-lists: the ‘top 50’ established fintech firms around the globe, which are ranked based on innovation, capital raising activity, size and country; and the ‘emerging 50’ firms, which are newer, innovative companies.
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Atom Bank was ranked most highly from the UK, at ninth place, with rival challenger banks Monzo and Starling also making their debuts in the ‘leading 50’ segment of the list.
No UK-based peer-to-peer lenders made the list, but France’s Lendix, US student loans provider SoFi and China’s Lufax were among the global online lenders that were recognised.
“The 2018 Fintech100 showcases the increasing diversity and scale of the global fintech market,” said Anton Ruddenklau, Global Co-Lead of KPMG Fintech.
“Notable this year is the emergence of neo banks with 10 on the list – three of which are based in the UK. This is a great sign for UK banking competition and over the next five years Open Banking regulation will enable even more progress in the growth and competition of digital banking.
“Globally, payments and lending continue to be the dominant sectors, however wealth management is taking off, with 14 companies on the list and insurtech remains strong with 12 companies.”
Payments companies have the largest presence in the Fintech100, with 34 in total, followed by 22 in lending, 14 in wealth management and 12 in insurance.