3 July 2019
London is a major fintech innovation hub, helped by the city remaining one of the leading global financial centres, and numerous hubs and accelerators programmes that foster the development of a fast and ever-advancing fintech sector. This trend looks likely to continue, and the best and the brightest will be the talk of London fintech week being held between 5-10 July with blockchain, regtech and cybersecurity continuing areas of focus, and no doubt Facebook’s announcement of its intention to launch Libra (its own digital currency) will be a major talking point.
The Bank of England Governor, Mark Carney, has been recently shown support for fintech start-ups, signalling that the Bank is to open up its balance sheet to a new generation of payment providers and indicated that there is a lot of potential for fintech to improve the ability of small businesses to access finance, as the ability for smaller firms to access funds is a continuing unresolved issue. The funding gap is around £22bn, so there is plenty to do, however, statements of support from the Bank are important, as is access to venture funding, and the ability to attract and retain talent in the capital.
Fintech is part of our everyday lives in the form of 'progressive disruption'. Whether it is mobile banking apps or digital payment methods, these are becoming the norm, and regulated forms of cryptocurrencies and trading platform such as securitised tokens are on the horizon. As a result, the financial sector will see significant change and disruption with Big Tech and future rising stars of fintech increasing their presence, and eventual dominance, in certain areas. It is critical for London, and the UK, to be part of the pack, and to be at the forefront of this change if we are to continue as a global financial powerhouse.
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If your company is innovating in fintech, contact UHY for advice on R&D tax credits, or general business advisory. We can support you, whether your business is large or small, at the start of its lifecycle or considering strategic options, M&A or IPO; we have technology professionals who understand a changing and challenging environment. Please contact either Rob Starr or Andrew Snowdon if you would like to know more.
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