Numbers spell success for the city’s booming fintech sector

Press release published on behalf of Whitecap Consulting

A new report from Whitecap Consulting shows that the FinTech sector in the Leeds City Region has experienced huge growth over the past three years, is now home to more than 100 FinTech firms and contributes more than £700m per year to the regional economy.

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 – or financial technology – firms have been identified in Leeds City Region, the vast majority of which are start-ups and scale-ups, a segment that has tripled in number over the past three 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 a number of banks and 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.

The new report is the result of a research project which was funded through sponsorship and support from Leeds City Council and other key organizations such as 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 previous one published in early 2020, shortly before the outbreak of the COVID-19 pandemic.

Councilor Jonathan Pryor, Leeds City Council’s executive member for economy, culture and education, said:

“Leeds has a lot to be proud of, not least the new Center for Green Finance at the University of Leeds, the UK Infrastructure Bank and the Bank of England, as well as the Financial Conduct Authority’s recent move to the city, and the recognition of Leeds as part of an established FinTech – cluster. FinTech start-ups, scale-ups and leading institutions recognize Leeds as an exciting space for innovation and opportunity.”

Tom Riordan, Chief Executive of Leeds City Council, said:

“Whitecap Consulting has provided 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.”

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 our delivery for members ours. A thriving local FinTech industry also has an important role to play, which is why we’ve been delighted to support this report.”

Whitecap’s analysis shows a huge growth of 263 percent in the number of FinTech start-ups and scale-ups with a presence in the region, which now amounts to 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 two years include Answer Pay and Tred.

Steve Elliot, managing director of LexisNexis Risk Solutions (UK and Ireland), said:

“LexisNexis Risk Solutions is proud to have supported this report and to play an active role in the economic prosperity of the Leeds City Region, which, as this report shows, has experienced strong growth. We acquired Leeds-born tech startup TruNarrative in August 2021 and are proud to have a home in Leeds and to create a number of exciting job opportunities as we continue to grow the team supporting the LexisNexis RiskNarrative orchestration platform.”

Deb Hetherington, Head of Innovation Services at Bruntwood SciTech, said:

“FinTech has long been a high-profile feature of the Leeds economy, bridging the gap between the vibrant technology and finance sectors in the region. The strength of FinTech in Leeds, which is evident in this report, is also reflected in the organizations based on our platform technology and digital workspace , where FinTech is prominent alongside other fast-growing digitally-led sectors such as LegalTech and HealthTech. We look forward to playing our part in the sector’s continued success over the coming months and years.”

In 2021, a strategic review of the UK FinTech sector (Kalifa Review) was published, which highlighted the growth of FinTech across the UK. The Kalifa Review identified 10 key FinTech clusters in the UK, with the Leeds-Manchester cluster cited as one of three ‘established’ clusters outside of London. The review also recommended the creation of the Center for Finance, Innovation and Technology (CFIT), which will be launched later this month.

Chris Sier, HM Treasury FinTech Envoy for England, Chair of FinTech North, Visiting Professor at the University of Leeds and Chair of ClearGlass, said:

“Over the last few years we have seen the accelerated development of FinTech across the regions of the UK, with increased national focus coming via initiatives such as the Kalifa Review, the FinTech National Network and now the newly created Center for Finance, Innovation and Technology (CFIT ).Leeds has played a prominent role throughout this national development and continues to thrive due to the strength of its finance, technology and FinTech sectors, which have always been strongly supported by the public sector and the region’s many universities.”

Charlotte Crosswell OBE, Chair of the Center for Finance, Innovation and Technology (CFIT), 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.”

A launch event for the new report took place at Leeds Building Society’s head office today (Tuesday 14 February).

The report can be downloaded here.

ENDS