UK Announces £5.5M Program to Support Fintech Industry

The UK Treasury and the City of London Corporation are rolling out a £5.5m program to support the fintech industry. The UK fintech space is growing massively and accounts for more than 1,600 firms, according to the International Trade Administration (ITA). The ITA wrote in a September 2022 report that the UK is the second-to-last site for fintech investment, after the US. Interestingly, US financial technology and services provider Wahed recently expanded its reach into the UK. The Islamic startup opened a brick-and-mortar branch in the UK, with a similar design to an Apple store. The company’s employees will be available to look after customers and respond to inquiries from both new and existing consumers.

In addition, the current number of firms focusing on financial technology in the country is expected to be X2 by 2023. The fintech market facilitates financial services with fast transactions, smooth processing and low costs. With its potential, the sector has also strengthened many, and enabled innovation with improved security.

A revolutionary and impactful industry like fintech is positioned to attract significant funding. Investments in space increased by 9.1 billion during the first half of 2021, representing a 24% increase compared to the first half of 2021. The UK was also a top destination for European fintech investment in 2020, with 4.9 billion dollar registered. The market also contributes to the UK economy through its establishment and more. It added around £11 billion ($13.5 billion) to the UK economy and provided more than 76,000 UK jobs.

UK launches Virtual Unite Fintech Experts

The recently announced hub, called the Center for Finance, Innovation and Technology, is designed to unite talent across all fields in support of the fintech space. The name came from a recommendation by the Kalifa Review in February 2021. Bloomberg reported that the hub for UK fintech experts would be virtual without a physical office. The virtual platform launches on Tuesday in Leeds and will rely on ad hoc collaborations to improve the industry.

An example of the influx of investors into the US fintech sector is Tencent’s investment in British company Previse in April 2022. The Chinese conglomerate was said to join the list of investors contributing to Previse’s Series B funding. Ahead of the fintech firm, Tencent has bankrolled other UK firms. It funded digital bank Monzo, which secured $100 million in a top-up.

While the UK is a hot spot for fintech startups, the US remains the leading destination for investment.

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