Fintech Wales annual report reveals jobs up, investment down

This is the first time the organization has delivered an in-depth report on the state of FinTech in Wales, specifically commenting on the organisation’s four main pillars: skills and talent, ecosystem and community, funding and investment and promoting Welsh FinTechs. and Wales as a place for organizations to thrive.

In its key findings, the report titled “FinTech in Wales 2021 / 2022” estimates that over 1,000 jobs have been created in the sector over the past year, with companies such as Sonovate, Delio, Pepper Money, Wealthify, Credas and Principality Building Society, and many more are all expanding their workforces.

The report also highlights that some London-based challenger banks have started to scale their operations in Wales, including Starling bank, which has doubled its staff in Cardiff. And FinTech Wales’ own accelerator programme, Foundry, has also created over 100 jobs in the past year.

Sarah Williams-Gardner, Chief Executive of FinTech Wales, said of the report: “This is the first year we have published a report outlining the state of FinTech in Wales. FinTech Wales is proud to highlight the FinTech excellence we have here in Wales; to see the emerging, scaling and established members of the ecosystem make an impact on the global stage. As well as being a sign of growth, this was part of FinTech Wales’ vision when it was launched. We are the voice of Welsh FinTech sector, which champions success, influences change, brings the community together and strengthens the sector by supporting new innovative startups. This report takes an overview of the state of FinTech in Wales over the past year and is something we can now use as a benchmark going forward.”

The report also includes a quote from Sir Ron Kalifa, who identified Wales as an emerging FinTech cluster in the 2021 Kalifa Review.

He said of the report: “Since publishing the UK Strategic FinTech 2021 review, I have come to learn more about the thriving Welsh ecosystem and am delighted to see successful scaling fintechs such as Sonovate, Delio, Yoello, My PinPad, Chetwood , Bikmo to name a few. The Welsh cluster is a very valuable contributor to the UK’s global FinTech position. I am also confident of the innovation and passion in the Welsh ecosystem; there is more we have yet to see.

“I am delighted to support FinTech Wales in all the great work they contribute to the greater success of the UK. Keeping the UK at the forefront of FinTech innovation and growth is a priority, which I am delighted is supported by HM Treasury and the City of London Corporation The creation of the Center for Financial Innovation and Technology (CFIT) will see UK-wide collaboration tackle the barriers under a UK-wide virtual coalition model.

“The support of FinTech Wales and its membership in shaping CFIT has been very valuable and will continue to be so as we appoint the new CFIT leadership team to deliver against its mission.”

Sarah continued: “We are obviously delighted to see that over 1,000 jobs have been created in the FinTech sector in Wales, but we also need to be mindful of the skills required to fill these roles now and in the future. Wales boasts extremely high-quality universities, which contribute to the skills pipeline, and our mission at FinTech Wales is to continually develop our skills strategy by working with members, universities and education and training providers to further grow this pipeline. Once we have ensured that all FinTechs in Wales have the skills they need to succeed, the next step is to become a globally recognized export of talent.”

In terms of publicly announced funding, the global investment environment in Welsh FinTechs has slowed from the previous 12 months, with £12m raised (up to October 2022), compared to £24m in 2021. Sarah said of these figures, “While we have seen slow funding in 2022 compared to previous years, this is not unique to Wales and FinTech continues to be seen as a priority growth sector As we enter the highest cost of living increase most of us have ever experienced we should remember even that FinTech was born after the financial crisis of 2008. In these times of crisis we should expect to see further innovation resulting in further growth.”

Over the past year, FinTech Wales has expanded its network of investors and a key indicator of our success is the amount of investment raised for Foundry startups. Since launching our accelerator programme, The Foundry, in 2021, we’ve seen 16 start-ups go from strength to strength, raising over £20m of investment and creating hundreds of jobs in Wales. It has also become a significant influencer for startups from around the world looking to develop their business in Wales.

Launched in April 2019 by Richard Theo, FinTech Wales operates as a trade association with member organizations comprising FinTech and financial services companies headquartered or operating in Wales. The idea behind FinTech Wales is to help businesses both in Wales and beyond, making Wales the place to start, scale and accelerate innovative FinTech businesses, adding value to the Welsh economy.