FinTech Companies in the United Kingdom lead the way according to a recent blog post on FinTech news site altFi. The blog post goes on to say that the UK has created a FinTech ecosystem which is the envy of Countries all over the world. The United Kingdom is now home to new banks with multi-billion-pound valuations; new players across retail, savings; SME banking shaking up the status quo.
CEO of 11:FS a consultancy and media group believe London is the FinTech equivalent of the Galapagos Island; a place with unique characteristics that are studied and analysed to understand how it began, how it grew and how it continues to thrive.
The 3 Factors Driving the Success: Regulation, Talent and FinTech Investment
Regulation: The FCA established a sandbox that allows businesses, authorised and unauthorised, to test innovative propositions in the market with real consumers. Another factor was the PRA lowering the initial minimum capital requirements for small bank licences, combined with a regime that allows ‘restricted licences’. This resulted in the creation of 18 new UK banks.
Talent: One positive that came out of the Financial Crisis was the development of the ecosystem which unleashed talent that in turn created innovate solutions to widespread problems. With Banking institutions reducing staff numbers left right and centre at that time, it was no wonder that many of the UK’s earliest FinTechs were individuals with investment banking experience.
FinTech Investment: A hugely important factor was the access to private equity, VC’s, angel investors, and corporate venture capitalists. Top this up with various tax incentive/credits that were awarded for certain types of investment and you had the perfect eco-system for growth and development among FinTechs.
To read more about how UK FinTech Companies are now the Galapagos of FinTech Innovation please click here.
Source: Altfi.com
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