FinTech is leading the UK’s fourth industrial revolution and transforming the way we live and conduct business, the brand new report UK Fintech Census 2017 commissioned by HM Treasury to EY and Innovate Finance states.
In other words, fintech plays a crucial role for the competitiveness of the Country especially in such a period where Brexit uncertainties are putting business leaders under pressure.
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According to the latest figures, over 1,600 FinTech are the companies currently operating in the UK. Of those 1,400 received the survey to which 245 firms responded providing a 18% response rate.
Among the main findings, the average age of FinTechs in the study is 5.3 years, with a peak in the number of companies founded in 2014.
Average UK revenue of respondents grew by 22% between 2014 and 2016, when average revenues reached £5mn. Fifty percent of companies expect global revenue growth of over 100% in the next 12 months.
FinTechs have received an average of £15 million in investment to date. Half of all respondents expect their next funding round to be more than £2 million, with 35% anticipating more than £5 million.
In aggregate, FinTechs expect a total of £2.5 billion for their next funding round, and 33% of respondents expect an IPO to be likely in the next five years.
The majority of respondent companies have an overall UK headcount of less than 150, with 95% looking to hire up to 50 employees over the course of 2017. However,
The calibre of people leading and running FinTechs is a key pillar to their success, as is future talent pipeline.
Talent attraction and retention, in fact, is a major concern within the sector. Barclays UK chief executive Ashok Vaswani told The Daily Telegraph earlier today:
Whatever happens after Brexit, the UK has to be sure it can still attract the best talent. Fintech experts need to be able to call the UK home and to feel welcome here.
According to his view, the UK needs to work hard to retain its place at the heart of the world’s growing fintech sector:
Britain has a lot going for it: a supportive regulatory environment, VC [venture capital] funding, and a supportive legal system. All these things allow fintech to flourish. But we are not alone. We’ve all got to put our shoulders to the wheel. We need to work hard to maintain our position, investing in digital infrastructure, digital identities and rules and regulations around digital etiquette. These are the building blocks we need to put in place, because we need to bring the nation with us.
The latest effort in this direction, City A.M. reports, is the creation of the Fintech Delivery Panel (FDP), a project by the UK Treasury and industry group Tech City UK with support form across the industry to promote fintech after Brexit.