Growth in financial technology investment fastest in Europe
Although the United States still captures the highest share of financial technology investment, Europe had the highest growth rate with an increase of 215 per cent to nearly £1 billion. The UK and Ireland accounted for 42 per cent of the European total, as investment rose from £177 million to £418 million in 2014.
In the rest of Europe, the regions that experienced the most significant levels of investment in 2014 were the Nordic countries (£232 million), the Netherlands (£205 million) and Germany (£55 million).
According to UK Trade & Investment (UKTI) the UK is a “uniquely well-suited location for technology applied to financial services” and the UK’s growing strengths in Fintech are due to:
- the presence of a large and technologically sophisticated customer base
- London’s position as a world-leading centre for financial services
- good availability of business capital – a supportive regulatory approach
- excellent financial services infrastructure, and
- London’s position as a global trading hub.
Anthony Sherick, MD of Technojobs added that “the reason we’re seeing London become the fintech capital globally is partly down to the fact that people in the UK are quick to try new services and trust online services, as well as the existing strong financial services sector.”
And Accenture's MD, Julian Skan, overseeing the FinTech Innovation Lab London, believes that the massive investment in fintech shows that the digital revolution is well advanced in financial services, and it is both a threat and an opportunity for banks.
He said: “Fintech is empowering new competitors and start-ups to move into parts of the banking business but, paradoxically, it is also helping banks to create better, more convenient products and services for their clients. It is also leading to increased cooperation between traditional banks and innovative start-ups and technology businesses in a way that can result in totally new business models and revenue streams.”