2 minute read 20 Sep 2019
Group of white butterflies

UK Fintech: the opportunities and challenges facing the industry

Authors

Omar Ali

EY EMEIA Financial Services Client Services Managing Partner; EY UK Financial Services Managing Partner

Passionate about building a better financial services industry with our people and our clients. Champion for D&I and helping our people to reach their potential. Football enthusiast. Bad at skiing.

Tom Bull

EY UK FinTech Leader

Technology-focused. Facilitator of innovation. Travel enthusiast.

2 minute read 20 Sep 2019

UK FinTech Census 2019: A snapshot: two years on

UK FinTech continues to drive innovation and growth for UK FS and the economy, with the Government and regulatory bodies committed to maintaining a lead in the sector.

This includes their FinTech and digital skills agenda, with policy measures such as HM Treasury’s FinTech Sector Strategy, HM Government’s ‘FinTech Bridges’ and the regulatory sandbox from the Financial Conduct Authority (FCA).

However, it is paramount to maintain an up-to-date understanding of the UK FinTech landscape to ensure programmes are achieving desired outcomes and to highlight new challenges facing UK FinTechs.

The results of the UK FinTech Census 2019 are heartening. Since we first undertook this study in 2017, we have seen strong performance from UK FinTechs, with many scaling their businesses to reach millions of customers, achieving record investment rounds and embarking on international expansion.
Omar Ali
EY EMEIA Financial Services Client Services Managing Partner; EY UK Financial Services Managing Partner

EY first conducted the UK FinTech Census back in 2017, having been commissioned by HM Treasury to survey the FinTech sector. The report helped build greater awareness and understanding of the sector and provided a platform for FinTechs to express their views on areas such as talent, capital and investment.

Building on the foundations from 2017, we once again reached out to FinTech firms in the UK to gain a first-hand perspective of the opportunities and challenges these businesses are facing. This report shares the insights provided by FinTechs across a broader and more diverse market than in 2017 — with financial software, SME lending, and payments and remittances topping the list. It also highlights the sector’s changing needs, and will hopefully serve as a catalyst for future policy recommendations, regulation and innovation.

The 2019 EY findings reveal a theme of consistency and continued momentum over the past two years.

The 2019 EY findings reveal a theme of consistency and continued momentum over the past two years.

Key statistics offer insights into:

  • demographics
  • revenue growth
  • investment
  • talent and skills
  • gender diversity
  • regulation
  • future expansion.

Whilst there is still work to be done as we move into 2020, the overall results are very positive.

“The UK FinTech Census 2019 tracks the development of the FinTech sector across the UK, and the results are heartening. Since we first undertook this study in 2017, we have seen strong performance from UK FinTechs, with many scaling their businesses to reach millions of customers, achieving record investment rounds and embarking on international expansion,” says Omar Ali, UK Financial Services Managing Partner.

Summary

We hope this report will become a detailed reference point for policymakers, regulators, the Government and the wider financial services sector in developing supportive government policy and promoting the UK’s FinTech agenda.

About this article

Authors

Omar Ali

EY EMEIA Financial Services Client Services Managing Partner; EY UK Financial Services Managing Partner

Passionate about building a better financial services industry with our people and our clients. Champion for D&I and helping our people to reach their potential. Football enthusiast. Bad at skiing.

Tom Bull

EY UK FinTech Leader

Technology-focused. Facilitator of innovation. Travel enthusiast.