London surpasses the USA and the rest of Europe, becoming the epicenter of FINTECH
We have very good news for all entrepreneurs and future investors in the city of London.
According to a study by Robert Walters, London has surpassed the US and the rest of Europe as the leading city in financial technology investment (FINTECH).
In the last 3 years, FINTECH investment has increased 500% in London, while in the USA the increase has reached 170%, the rest of Europe is in the last place of the study despite having received an investment increase of 133%
Fintech is a financial industry that applies innovative technologies to business and investment activities. They are the modern applications, processes, products, or business models in the commercial services industry.
Fintech companies offer technological tools that help to carry out legal acts related to money efficiently, simply, and with reasonable costs, which is divided into four segments:
- Operation tools and payment methods
- Customer insight and Big Data
- Security and identification of people
- Electronic money
“The Fintech’s competed with the banks”
Tom Chambers, Senior Technology Manager (London) at Robert Walters, said: “Fintech companies were not initially seen as direct ‘competition’ for traditional banks, with their very different products and services.”
“However, in the last 12-18 months, we have seen Fintech apply for bank licenses, which means that they can now expand their offering to include overdrafts, security deposits, and the ability to set up direct debits.”
“Perhaps the most drastic change was the swift action by governments to ‘reorganize’ traditional loans and allow financial technology companies to be an official provider of loans to the government’s rescue scheme COVID-19, introducing fintech companies to the masses.”
“As Fintech’s enter traditional banking territory, and financial services continue to incorporate technology into their processes, sectors will be indistinguishable in the coming years.”
London has taken advantage of the Fintech
In the first quarter of this year, the Fintech companies in London have generated almost as much investment ($114 million) as they did throughout the year 2017 ($148 million), which shows the importance of this sector in this year.
The city has known how to take advantage of the boom in financial technologies
In 2019, the number of investments in UK Fintech’s almost doubled to 96, however only eight went to regional businesses (less than 10%).
Despite the Coronavirus pandemic, it seems that 2020 will be a fruitful year for Fintech’s and also for new investors in the English city.
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