Regional hubs are the driving force at the heart of the UK’s FinTech ecosystem
Over the last few months, the UK has continued to play a definitive role in the expansion of global FinTech, with the industry now worth £20bn in annual revenues in the UK and employing over 135,000 individuals. 60% of European FinTech startups are now based in the UK. This was emphasised by Business Insider’s recent article on the 18 most innovative finance startups in Europe — 14 of those are based in the UK and 10 are Innovate Finance members.
These figures are supported by the Global Innovation Index (GII), which recently ranked the UK as the second most innovative country in the world, placing it above the USA, Singapore and Germany for the third year running. This ranking reflects the UK government’s commitment to supporting innovative businesses through tax incentives and funding support, the presence of world leading academic institutions as well as strong links between research and business, which have led to a well-connected innovation ecosystem.
Whilst London has been crowned the world’s top financial sector, the success of the UK’s innovation ecosystem has relied largely on the growth of its various regional tech hubs such as Manchester, Leeds, Cambridge and Edinburgh. This week, Innovate Finance celebrated the role that these regional clusters play via the launch of its inaugural FinTech in Manchester event. The event, part of Innovate Finance’s regional strategy, brought together local technology startups as well as leading FinTech influencers such as Eileen Burbidge, the Special Envoy for FinTech and newly appointed Chair of Tech City UK.
Throughout the day, our speakers highlighted Manchester’s key strengths in data analytics, artificial intelligence, cyber security, and social capital and its position as an alternative to London, which has become increasingly expensive for cash-strapped startups. Home of the industrial revolution and the first stored programme computer, Manchester also has a diverse talent pool and access to 105,000 students that study in one of the four universities located in the city. With over £3.5bn invested to support Manchester’s digital and technology infrastructure and with over 56,000 individuals employed in the digital sector, the city clearly has the potential to realise the Chancellor’s vision for a Northern Powerhouse.
Manchester is just one of many growing regional tech hubs with its own unique strengths and competitive advantages. Edinburgh, for instance, is also driving the way in artificial intelligence and machine learning, whilst Cambridge is pushing forward in hardware and wireless communications. There is a clear opportunity here for the UK to create tailored local strategies which focus on an area’s competitive advantage. By working together, regional clusters can create a powerful picture which emphasises their regional specialism, attracting the attention of investors at home and abroad.
“The UK is a tech nation” Baroness Joanna Shields, former chairwoman of Tech City UK, noted earlier on this year. “There are clusters all over the UK and they have different skills and specialisms. London is the world’s tech city but other cities can compete globally.”
Got any thoughts on the UK’s FinTech ecosystem and the role of regional tech hubs? Comment or tweet @InnFin.
By Julia Morrongiello, Associate at Innovate Finance
