Leeds FinTech sector has more than doubled since 2020 Prolific North

A new report from Whitecap Consulting shows that the FinTech sector in the Leeds City Region has experienced tremendous growth over the past three years.

Leeds is currently home to more than 100 FinTech firms, contributing more than £700m per year to the regional economy, according to Whitecap research.

The report is published at a time when the financial sector in the region is booming, supported by the decisions of the Financial Conduct Authority, the UK Infrastructure Bank and the Bank of England to establish bases in Leeds. More than 100 FinTech firms have now been identified in the Leeds City Region, the vast majority of which are startups and scaleups, a segment that has tripled in number over the past 3 years. Core strengths are visible in payments, lending, financial regulation, asset management and banking.

The region is already home to more than 60 established national and international financial services organisations, all active in FinTech, including banks, lending firms and three of the UK’s largest construction companies. Leeds is also the only city outside London to be home to all three of the UK’s major credit reference agencies.

Richard Fearon, Chief Executive of Leeds Building Society, said: “Technology and innovation are integral to providing the modern financial services that Leeds City Region has become synonymous with. One in five of our staff at Leeds Building Society has a digital or technology role , and they are fundamental to us delivering for our members. A thriving local FinTech industry also has an important role to play, which is why we have been delighted to support this report.”

The new report is the result of a research project which was funded through sponsorship and support from organizations including: Leeds City Council, Leeds Building Society, LexisNexis Risk Solutions, Bruntwood SciTech, Cloud Gateway, Equiniti, University of Leeds, FinTech North and Leeds City Region Enterprise Partnership. It is the third report published by Whitecap on the Leeds City Region, with the last one published in early 2020, just before the outbreak of Covid.

Tom Riordan, Chief Executive of Leeds City Council, said: “Whitecap Consulting has given structure and clarity to the FinTech ecosystem in this report, and the in-depth research and analysis both quantifies and qualifies the strength, growth and maturity of the sector. It’s great to see double-digit growth across all key metrics since 2020, and the report recognizes the diversity and key strengths across the spectrum of tech sub-sectors, from RegTech to LegalTech.”

Whitecap’s analysis shows a growth of 263 percent in the number of FinTech startups and scaleups with a presence in the region since 2020, now a total of 87 firms. In total, there are 107 FinTech firms, and more than 200 firms identified as operating in the FinTech sector, including financial services and technology firms. The sector has been strengthened in recent years by decisions by organizations such as LHV Bank, Iwoca, Recognize Bank, Global Shares and PEXA to establish bases in the region. New startups in the last 2 years include Answer Pay, the UK’s first certified provider of Request to Pay services, and Tred, which claims to be the only FinTech in Europe to be both B-Corp pending and a member of 1% For The Planet.

The 2021 Kalifa Review of FinTech across the UK also identified the Leeds-Manchester FinTech ‘cluster’ as one of three ‘established’ clusters outside of London and recommended the creation of the Center for Financial Innovation and Technology (CFIT), which will be launched later this month with Charlotte Croswell , OBE, as its first chair.

Croswell said: “The growth of the FinTech sector in Leeds is very impressive and I look forward to working with the financial services, FinTech and technology sectors in the region and across the UK to drive international FinTech growth, attract talent into the fintech sector, and ensure better outcomes for consumers and SMEs. It is vital that we continue to strengthen the links between industry, academia, government and regulators to support this exciting sector and ensure its impact is felt up and down the country.”