Welcome to the UK - The Fintech Capital of Europe
By Teamspirit on Monday, 13 May 2019
Confident, competitive and creative.
During Q1 2019, the UK attracted 50% of the total number of fintech deals made in Europe(1).
So why is the UK so successful at incubating fintechs? Is it the availability of capital and accessibility of the regulator? Or is it the talent pool, UK entrepreneurship and communication expertise?
We’ve compiled a range of facts, stats and reasons as to why the UK is the go-to destination, and why we should harness this confident environment to project forward and communicate our openness for growth.
1 KPMG Pulse of fintech report Q1 2019
2 The Future of Finance is Emerging: New Hubs, New Landscapes Global Fintech Hub Report 2018
Here's why our future is bright
With growth now coming from Australasia and South America, diversifying what were three hubs to many more, the UK is well positioned to become the leading hub for fintechs that have a global mindset and are eradicating borders.
- The FCA started Project Innovate in October 2014
- Encourages the trialling of self-regulation within the industry (the first P2P industry association in the world), and prompts the industry to develop virtual sandboxes or umbrella sandboxes
Capital drives the growth of fintech companies
- As a global financial centre, there are many global investors, such as Accel, Anthemis Group, Balderton Capital, Index Capital, Octopus and more
Accelerators and incubators
- For instance, Startupbootcamp fintech accelerator programme
- Barclays RISE
- Techstars and Accenture’s Fintech Innovation Lab
- Incubators such as Level39, Silk Ventures
Increasing digitalisation of the traditional financial sector
- In November 2016, the regulators encouraged large financial institutions such as HSBC to collaborate with start-ups
- Among the leading UK banks, Lloyds Banking Group is currently ahead of the pack in terms of its early adoption of fintech and open banking
- The next best is Barclays, with HSBC and RBS seemingly the stragglers
Confident communicators: The teenage years ahead
The need to codify the brand and communicate consistently is becoming imperative, with growth coming from geographical expansion as well as product development and partnerships. We should expect to see more confident and frankly grown up communications as fintechs recognise the power of brand and the vitality of their branded experience across all media channels.
Starting with a clearly defined narrative, rooted in their purpose, fintechs require better strategic communications that deliver wellorchestrated authentic campaigning and messaging. The leading fintechs are also recognising the trust that more traditional media channels such as TV, out of home and cinema help to build - often ignored to date. Stature and consistency of message are core to taking any brand to wider audiences.
So, at a time when the investment community are focusing their attention on the mega deals, being the recognised fintech brand will be mission critical to help secure further funding as the market consolidates and hones in on proven business models.
For more on our Fintech Propel proposition visit teamspirit.uk.com or contact email@example.com