Collaborative, accessible, resilient – a look at London’s fintech sector

Financial technology (better known as fintech), has been around since the invention of the telegraph. Transatlantic cables have been transmitting financial information across borders since the mid-1800s (1).  

But it is the modern fintech companies of today that have revolutionised the relationship between the consumer and the financial sector. Revolution requires innovation, and innovation requires a collaborative and supportive ecosystem.  

It is therefore unsurprising that London, home to 41 fintech unicorns and currently ranking second in global venture capital (VC) investment in fintech, is such an attractive destination for startups and scaleups.  

Fintech on a global scale  

Globally, VC funding for fintech surged from $11.9bn in Q4 2022 to $14.8bn in Q2 2023 (2). Consumers are welcoming fintech solutions as a rise in online transactions, a greater switch to mobile banking and the emergence of blockchain technology demonstrates an increase in consumer adoption (3). 

Adding to the optimistic future of the sector, experts predict that 2024 will be a stronger year for fintech, after what was admittedly a challenging period last year. Growing inflation, a stagnant market (4) and geopolitical conflicts all took a toll on the investment landscape (5), leading to a 48% drop in investment in 2023 (6). 

London’s fintech sector 

In 2023, London secured £4.5bn of the UK’s total investment into fintech, and is the leading European market in the sector, with its world-leading figures expected to continue into 2024 (6). The UK capital now ranks above San Francisco for the first time and is second only to New York on funding, availability of talent and regulation (7), which is a successful result for the city that shines through a flat year for fintech. 

There are a few reasons that contribute to London’s credible year. While funding opportunities and government support have helped to strengthen the London fintech scene, it is its resilience, accessibility, openness to change and diversity that have set it apart from the rest of the world. London’s collaborative fintech ecosystem is made stronger by its diverse talent pool and unparalleled networking opportunities. 

Tap into London’s fintech ecosystem 

So, how can businesses tap into London’s resilient and growing fintech ecosystem?  

It’s all about making the right connections and having a supportive network to help find your right direction for your business’ growth plans. From navigating the regulatory environment to gaining access to London’s business ecosystem, our team of sector advisors are here to provide free, impartial business advice to fintech companies who have eyed London as their next expansion opportunity. 

Interested in learning more about what London’s fintech hub has to offer? 👉 https://bit.ly/3Om1x2v. Ready to take the next step? Then connect with one of our sector specialists to receive long-term support and advice on growing your business in London 👉 https://bit.ly/4bDGpi1.

Sources: 

1. Windmill, 2024 

1. Thomson Reuters Institute, 2023 

1. Finextra, 2023 

1. UKTN, 2023 

1. Innovate finance, 2023a 

1. Innovate finance, 2023b 

1. City A.M., 2023