UK Announces £5.5M Program in Support of Fintech Industry

The UK Treasury and the City of London Corporation are rolling out a £5.5 million program to support the fintech industry. The UK fintech space is growing massively and accounts for more than 1,600 firms, according to the International Trade Administration (ITA). The ITA wrote in a September 2022 report that the UK is the second latest site for fintech investments, following the US. Interestingly, American financial technology and service provider Wahed recently expanded its reach to the UK. The Islamic startup opened a physical branch in the UK, with a similar design to an Apple store. The company’s employees will be available to attend to customers and provide answers to inquiries from both new and existing consumers.

Also, the current number of firms focused on financial technology in the country is expected to X2 by 2023. The fintech market brought ease to financial services with swift transactions, smooth processing, and low costs. With its potential, the sector has also empowered many, enabling innovation with improved security.

A revolutionary and impactful industry like fintech is positioned to attract significant funding. Investments in space increased by 9.1 billion within the first half of 2021, signifying a 24% rise compared to the first half of 2021. The UK was also a top destination for European fintech investment in 2020, with $4.9 billion recorded. The market also contributes to the UK economy through the creation and more. It added around £11 billion ($13.5 billion) to the UK economy and provided more than 76,000 jobs in the UK.

UK Launches Virtual Unite Fintech Experts

The newly announced hub, dubbed the Centre for Finance, Innovation, and Technology, is designed to unify talents across all fields in support of the fintech space. The name came from a recommendation from the Kalifa Review in February 2021. Bloomberg reported that the hub for fintech experts in the UK would be virtual with no brick-and-mortar office. The virtual platform launches on Tuesday in Leeds and will depend on ad hoc collaboration to improve the industry.

An example of the influx of investors into the fintech sector in the US is Tencent’s investment in UK firm Previse in April 2022. The Chinese conglomerate was said to join the list of investors contributing to Previse’s Series B financing. Ahead of the fintech firm, Tencent has been bankrolling other British firms. It funded digital bank Monzo, which secured $100 million in a top-up.

While the UK is a hot spot for fintech startups, the US remains the leading destination for investment.

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