"Fintech is the fastest growing sub-section of technology in the UK."
The future of Fintech
Account Manager, Gemma Trevers, discusses the Fintech sector and her predictions for the future.
I recently attended ProManchester’s Future of Fintech in Greater Manchester event, which looked closely at the opportunities that this market is providing to our city, and the Fintech ecosystem that Manchester currently has. Having previously worked in the Fintech, payments, and banking sectors, for several years it was great to keep up to date with the latest developments.
The Fintech PR landscape in the UK
But, before we can understand what’s going on in the region, we need to understand the Fintech market in the UK as a whole.
Fintech is the fastest growing sub-section of technology in the UK. Over 1,600 Fintech firms already exist in the UK and generates £6.6bn for the UK economy each year. With 82 per cent of businesses expected to establish a Fintech partnership in the next three to five years, we can expect the sector to grow tenfold.
So, what about Manchester then? Well, Manchester has 108 Fintech related businesses alone, with 63 per cent having at least one B2B proposition. What’s more, the city is the fastest, and most profitable, Fintech region outside of London. So, there’s clear opportunities for the sector in the city.
Predictions for the future
Now I’ve provided a bit of background on the industry, here are my five key predictions for the sector in the next five years:
- Following Brexit, I believe Fintech will be the glue that holds the UK and EU together; Britain is a nation renowned for its financial service sector. Despite confusion over whether we’ll have the right passporting rights to operate in Europe, businesses from across the globe will still continue to use our best-in-class solutions and set-up shop here in the UK
- We’re going to see an increase in the number of partnerships between traditional banks and challengers. With traditional institutions being built on legacy systems that aren’t agile and are extremely difficult to adapt, these institutions will have to look at partnering with Fintechs in order to keep up with consumer demand and expectations
- There’s got to be more funding outside of London: with Manchester’s Fintech scene growing rapidly, investors at all stages have to divert attention away from the capital to support the regions’ fruitful financial institutions up north
- Consumer data and insights will take the lead when it comes to the customer experience. With consumers wanting a more personalised experience than ever before, it’s going to be those utilising data to tailor their service which will reign supreme
- Finally, in my opinion there’s going to be more and more instances of hacks and cybersecurity threats not only on the financial sector, but on anyone handling data. With Fintech usually having the latest technology to mitigate these threats, others will turn to these institutions to provide advice and support as cyber-criminals become increasingly advanced
Find out more
I can’t cover all things Fintech in this post, but to hear more of my insights, or to chat about all things tech, contact us here.