What distinguishes the London Fintech ecosystem from others?
The London Fintech ecosystem is widely recognized as one of the most established and rapidly developing finance and technology ecosystems. It is positioned within the world’s largest financial hub and contains some of the most innovative and recognizable Fintech startups, such as Transferwise, Monzo, and Funding Circle.
Moreover, London’s Fintech scene has been supported by a broader national movement, where from 2010 to 2016, Britain attracted US$5.4 billion in Fintech related investment out of a global amount of US$49.7 billion – more than any other area in Europe.
The primary factors which have served to both foster this strong reputation and distinguish the London Fintech ecosystem from others are multifold. London’s financial sector is uniquely located alongside a booming technology sector- something uncharacteristic of Silicon Valley, Route 128, or Wall Street. It also is housed within an environment with attractive investment incentives such as the Seed Enterprise Investment Scheme (SEIS), which provides initial income tax relief of 50% on start-up investments up to £100,000.
In combination with a diverse talent pool, active government support for foreign investment, and regulators progressively levelling the playing field between Fintech entrants and incumbent institutions, London has developed a blueprint for an innovative Fintech ecosystem unparalleled by any other.
This is giving rise to a new wave of innovative banking that is helping cement London’s place at the heart of the global Fintech industry.
In order to learn more of the elements and factors forming leading Fintech ecosystems like in London, you may be interested in taking CFTE’s Fintech Foundation course; Chapters 3 and 4 provide a comprehensive overview of current innovators in finance, where this innovation is occurring, and the methodology behind how it takes place. Other subjects covered in the course include challenger banks, blockchain & cryptocurrencies, payment systems and more.
Visit cfte.education/fintechcouse for more information, and subscribe to our free newsletters below for the latest developments in Fintech!
This is an updated version of a blog originally published 5th June 2018. Updated on January 3rd 2018.
