The UK has long been known as Europe’s leading fintech hub and has punched above its weight globally. A combination of strong university-level education, an entrepreneurial culture, and a history of supporting innovation has helped it lead continental Europe in tech and entrepreneurship. Yet no jurisdiction can take its current standing for granted, and there will always be a pressing need to improve the ecosystem, such as by removing red tape and lowering excessive taxes. There are now over 3,000 UK Fintech companies, and policies that support this sector of finance are vital.
A report by Chatsworth, shared with CI today, says UK Fintech leaders plan to invest and hire in the country but warn the Government that the country risks losing ground to rival financial centers unless it moves faster on AI, infrastructure, and regulation. The research comes from polling the top 100 Fintech leaders to measure current confidence in the future of the financial industry and what they want to see changed. The data was delivered ahead of the Fintech Week London gathering.
According to these Fintech insiders, if you could choose one thing to change, these are the top areas in need of immediate attention:
- Invest in AI and digital infrastructure – 26%
- Increase regulatory clarity and speed – 16%
- Strengthen UK public markets – 14%
- Improve access to growth capital – 10%
- Reduce regulatory burden – 10%
Overall, these Fintech insiders also share:
- 90% expect to increase UK investment and hiring over the next three years
- 46% believe Britain risks falling behind rival Fintech hubs on AI and digital infrastructure
- 43% identify regulatory clarity and speed as a competitive weakness
- 26% say investment in AI and digital infrastructure should be the government’s top Fintech priority
Nick Murray-Leslie, Principal at Chatsworth, says the message is clear. Fintechs want to invest in the UK, but they do not believe the UK’s position of leadership is certain.
“As the global Fintech industry descends on London this week, our CTOs are sounding the alarm on AI infrastructure, CEOs want faster and clearer regulation, and CFOs are worried about tax and competitiveness. These are the factors that will determine where fintech businesses invest, hire and scale,” says Murray-Leslie.
He says Britain is starting from a position of strength as a global financial center with world-class tech expertise and talent to support innovation.
“The good news is that fintech is ready to back Britain. The challenge for Government, particularly as we head towards the Autumn Budget, is to give these businesses every reason to keep investing here and create the conditions in which the next generation of global fintech champions can start and scale in the UK.”
As the UK recently experienced a transition in leadership, it is not yet clear how supportive the new government will be of capital markets, tax competition, and the need for regulatory clarity and reduced red tape.
