March 2, 2023

UK Fintech Hubs – a hot opportunity

10 min read

What is fintech?

The Fintech industry (short for "financial technology”) is centred on the principal of using technology to improve and automate financial services. It includes a wide range of sub-industries, such as digital payments, online lending, personal finance management tools, and blockchain-based solutions, making it one of the biggest, fastest-growing markets.

The financial industry has seen investments in fintech companies reaching new heights in recent years as the consumer world focuses on speed, efficiency, and safety in their money management. The use of technology in financial services has not only made it easier and more convenient for consumers to access and move their money, but has also enabled new business models, such as peer-to-peer lending and crowdfunding.

What are fintech hubs?

Fintech hubs are locations where a high concentration of fintech companies, entrepreneurs, investors, and other stakeholders are present. These hubs tend to be cities or smaller regions that have established themselves as centres of innovation and expertise in the fintech industry.

Fintech hubs can be found around the world, and some of the most well-known ones include Silicon Valley in the southern San Francisco Bay Area, New York City, London, Singapore, and Hong Kong. There are also smaller fintech ecosystems developing in cities like Toronto, Sydney, and Berlin, as the fintech industry continues to grow and become central to other business operations too.

Aside from their broader positive impact on the economy, fintech hubs can provide a range of benefits: they offer access to a highly skilled workforce, provide a supportive and regulatory environment, and employees there have access to a network of like-minded professionals and investors. Fintech hubs can also provide access to funding and other resources, as well as opportunities to collaborate with other companies in the industry as they begin their scaling journey. This collaboration can in turn provide opportunity for innovation, new jobs, and further economic growth and development.

In the news

This week, as the country looks to encourage financial innovation outside of London, the UK government has announced its plans to establish several new financial innovation hubs across locations such as: Leeds, Manchester, and Bristol, as well as some cities in Wales, Northern Ireland, and Scotland. With the intention of boosting the UK's standing in the fintech industry, the government-backed Centre for Finance, Innovation and Technology (CFIT) has also announced that they will be offering student placements at leading fintech companies, as well as working on plans for a fintech growth fund.  

As one of the world's leading financial centres, with a long history of innovation and expertise in the financial industry, fintech hubs will play an important part in maintaining and growing the UK’s status in this field. In fact, according to research published by Innovate Finance, an independent industry body representing the UK fintech community, in 2022 the UK attracted $12.5 billion in fintech investment through 545 funding rounds. As such, the country is well-positioned to capitalise on the growth of the fintech industry; fintech hubs are a vital part of this strategy.

London is currently the most important fintech hub in Britain and is often considered to be the fintech capital of Europe. The city has a thriving fintech ecosystem, with a large number of fintech companies, investors, and other industry stakeholders present. London's position as a global financial centre, combined with its strong startup culture, makes it an attractive location for fintech companies looking to establish a presence in Europe. The UK government’s plan to create a number of these fintech hubs would not only create a wealth of opportunity for startup companies and hundreds of jobs, but would strengthen the local economies to these hubs too.

According to the CFIT:  

“These hubs will support the work of existing regional clusters across the UK to advance fintech innovation, a move that reflects the impressive growth of the sector outside London – in 2021, regional fintech saw a 237% increase in investment from 2020.”

With more opportunities for companies outside of London to participate in the fintech industry, the UK can expect to see an increase in jobs and further investment across the UK, all of which will help promote broader economic development in these regions.  

Next Steps

Selligence is the industry leader in providing sales triggers for you to use as actionable intelligence. We currently track 45 unique sales event triggers and within these, we also recognise a further 71 sub-event types. That means we can deliver 116 sales trigger types to you, on a daily basis.

Many of the Selligence sales triggers focus on the fintech industry, one of our core markets. By setting up saved searches for news on fintech hubs in your areas of interest, you can receive daily alerts delivered straight to your inbox or CRM. Sales triggers act as pre-intent data, meaning that you can get ahead of your competition by up to three months and be the first to reach out with relevance.  

If you’re interested in learning how you can build sales triggers into you daily routine, reach out now for a demo of the Selligence platform.

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