Since 2015, the Tech Nation Report has been the go-to resource for anything and everything related to the UK tech scene. Every year, the report delivers the comprehensive low-down on the ongoing evolution of the UK tech industry, the prominent tech clusters, and the key drivers powering growth across the entire sector.
Of course, it goes without saying that the UK is a critical part of the global technology landscape, and one of the strongest economic performers when it comes to technology. This year’s report follows this theme by framing the UK’s performance against a global backdrop, and exploring areas such as technology investment (both national and international), future growth areas, talent clusters and associated specialisms, with a focus on FinTech, and its contribution to the broader UK economy.
The UK is a Fintech World Leader
When it comes to FinTech, the UK is now considered to be a world leader. The Tech Nation Report highlights that between 2015 and 2018 that the UK FinTech sector received a whopping £4.5 billion of investment. No small feat, because investment in FinTech dramatically outstrips investments made to every other sector, including E-Commerce, Digital Health, Gaming, SaaS and every single other category detailed in the report. What’s more, when compared to other countries in the report, no other country invested in Fintech as much as the UK, relative to the other sectors which were measured. As a basis for comparison, the next two categories on the list below FinTech to receive the most investment were E-Commerce and Gaming, with £2.4 billion and £0.9 billion invested respectively.
So, what does this mean for FinTech companies? It means that if your business is FinTech and you’re looking for scale-up investment, the UK is the best place to be based. It also means that there’s more VC and scale-up funding available for FinTech than any other technology area highlighted in the report.
FinTech talent is thriving in the UK
The report also takes a look at the number of jobs created via scale-ups across a range of different industries, including Cybersecurity, Digital Health, manufacturing and Artificial Intelligence. The results of the report illustrate that FinTech and InsurTech created more jobs than any other scale-up sector. It’s estimated that InsurTech created nearly 16,000 jobs, and FinTech approximately 12,000. InsurTech and FinTech respectively were the top two sectors for job creation in the UK, followed by SaaS (8,500 jobs), E-Commerce (8,000) and Cybersecurity (4,000 jobs). For InsurTech, this represents 24% of all scale-up jobs created in the UK, and for FinTech 18%. The report also suggests that rise of InsurTech and FinTech scale-ups, and the availability of skilled talent in these areas, are not surprising, given the UK’s historical track record and strength in banking and financial services.
It’s been over 12 months since the second payment services directive (PSD2) came into effect, creating a huge wave of opportunities for innovative InsurTech and FinTech start-ups across the UK, particularly in London. The report certainly validates the UK’s strength when it comes to producing world-class FinTech and InsurTech start-ups, inward investment and talent.
We’re obsessed with all things FinTech and we’re working with some of the biggest and brightest innovators in the world. If you’re thinking about digital transformation we’d love to hear from you. Contact Waracle today to start the conversation.