Over two-thirds (68 per cent) of fintechs plan to expand internationally in the next 18 months, despite Brexit and Covid-19, research has found.
A survey of fintech executives by global expansion specialists Newfound revealed that only two per cent said they wouldn’t expand anytime soon and more than a quarter (26 per cent) are looking to launch in new markets next year.
However, Brexit and Covid-19 may slow fintech expansion with Brexit uncertainty causing half of the number of fintech executives to feel sceptical about setting up a base in the UK.
Fintech executives said the biggest inhibitors of market expansion are lack of access to talent (80 per cent), limited availability of funding (80 per cent) and the macroeconomic situation caused by Covid-19 (60 per cent).
Despite this, when looking at fintech expansion to the UK 52 per cent of executives said that they expect modest growth with a gradual increase over the next 12 months.
Access to talent is the key driver for fintech expansion to the UK, with fintechs claiming that programmes aiming to attract new tech workers to the country, such as the Tech Nation visa programme, are vital.
Fintechs executives also want the government to do more to help fintechs expand and attract them to the UK.
Two-thirds (66 per cent) said that the government could do more to support international firms and 42 per cent said that tax breaks and support programmes that make it easier to plan expansion, could help make the UK a more attractive destination for global fintechs.
“The fintech industry was forged in the 2008 financial crisis, and it is no surprise that the sector is resilient and optimistic in the wake of macroeconomic events like Brexit and Covid-19,” said Peter Gillingwater, chief executive of Newfound.
“It is promising to see so many firms are looking to expand over the next 18 months.
“The sector is emerging strong after a turbulent year which bodes well for the European fintech market.
“However, growth may be slower than pre-pandemic levels and fintechs are asking for more support from the government and industry to give them the best chance of success.”