London is fast becoming the top hub of innovation and technology, laying claim to the position as the fintech capital of the world, strengthening its place within the global financial market. To put this into perspective, the UK is now the world fastest growing region for fintech investment with deal volumes growing at 74% per year since 2008, topping $265 million in 2013 alone (Accenture). That’s twice as fast as its American counterpart Silicon Valley.
California and New York have both still considerably higher levels of investment and VC money into their respective fintech companies. However, if you look at fintech investment relative to total tech investment, London comes out top, attracting 30 per cent compared to California’s 12 per cent. London investors are therefore engaging far more with fintech, providing not just capital, but crucial advice to high-growth startups.
Commonly referred to as Tech City, London’s fintech cluster is now thriving, nurturing entrepreneurs, new business models and technologies. Last year alone, over 15,000 (UHV Hacker Young) new businesses were set up in EC1V, more than any other area in the UK. These are being celebrated and promoted with the help of new London initiatives such as the Fintech 50 and the first official Fintech Week.
London’s international talent and diversity are the jewel in its crown. Data shows tech professionals consider London’s diversity an advantage over the likes of San Francisco as a dynamic and more cosmopolitan location. London’s reputation as a melting pot and financial tradition are appealing to the brightest people from emerging markets, whose experience will be invaluable in building financial solutions of the future.
Karen Melonie Gould reports that The London Global Technology Hub, and even the Lord Mayor of New York sees London as the global Fintech hub.
Artist and influential entrepreneur Will.i.am as well backs the affirmation saying: ‘Fintech is the new rock and roll, and London is it’s centre.’ Now that’s a credible source if ever I have heard one.
The UK is generating more $1bn Unicorns than any other country in Europe. Just five years after the launch of Tech City, venture capital into London is now ten times higher than in 2010.
Tech firms in the capital secured almost $1.4billion in venture capital financing over the course of 2014, double the figure for 2013 and ten times the figure of 2010. In just the first three months of 2015, the City’s tech companies secured more than $682million in VC financing. Over the next ten years the number of digital technology companies in London is expected to rise to 45,000 and create more than £12 billion of economic activity, according to research by Oxford Economics.
Of the 17 UK tech unicorns, 13 are based in London. More than the total of Sweden and Germany put together. There was a 92% increase in new digital companies incorporated in Inner London between 2010-13. 251,590 are in digital employment across Inner London, more than any other city in the UK Over the next ten years there are expected to be 46,000 more digital jobs in London, according to research by Oxford Economics.
London Fintech different areas that make it a strong powerhouse:
Compliance, Smart Retail Bank, Insurance, Bond Marketplace, Mobile Payments, Student Finances, Smart Retails Bank:
London has become the FinTech capital of the world – With more people employed in the sector than any other city worldwide, standing at 44,000 (1,000 more than New York). London is a major hub for big data. There are an estimated 54,000 big data workers within 25 miles of London, compared to 57,000 for New York City and 98,000 for San Francisco/Silicon Valley.