The newly announced hub, dubbed the Center for Finance, Innovation and Technology, is designed to unify talent across all fields in support of the fintech space.
The UK Treasury and the City of London Corporation are implementing a £5.5 million program to support the fintech industry. The UK fintech space is growing enormously and represents over 1,600 companies, according to the International Trade Administration (ITA). The ITA wrote in a September 2022 report that the UK is the second newest site for fintech investment, after the US. Interestingly, US fintech and services provider Wahed recently expanded its reach to the UK United. The Islamic startup has opened a physical branch in the UK, with a layout similar to an Apple store. Company employees will be available to serve customers and provide answers to inquiries from new and existing consumers.
Furthermore, the current number of fintech-focused companies in the country is expected to be X2 by 2023. The fintech market has facilitated financial services with fast transactions, smooth processing, and low costs. With its potential, the sector has also empowered many, enabling innovation with greater security.
A revolutionary and impactful industry like fintech is positioned to attract significant funding. Investments in space increased by $9.1bn in the first half of 2021, an increase of 24% compared to the first half of 2021. The UK was also one of the top destinations for European fintech investments in 2020, with 4.900 million registered dollars. The market also contributes to the UK economy through creation and more. It added around £11 billion ($13.5 billion) to the UK economy and provided more than 76,000 UK jobs.
UK launches Virtual Unite Fintech Experts
The newly announced hub, dubbed the Center for Finance, Innovation and Technology, is designed to unify talent across all fields in support of the fintech space. The name comes from a Kalifa Review recommendation in February 2021. Bloomberg reported that the UK hub for fintech experts would be virtual without a physical office. The virtual platform launches on Tuesday in Leeds and will rely on ad hoc collaboration to improve the industry.
An example of the influx of investors into the fintech sector in the US is Tencent’s investment in British company Previse in April 2022. The Chinese conglomerate was said to have joined the list of investors contributing to the financing of the Previse B-series. Ahead of the fintech company, Tencent has been funding other British companies. It funded digital bank Monzo, which secured $100 million in a top-up.
While the UK is a hot spot for fintech startups, the US remains the top destination for investment.
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Ibukun is a crypto/finance writer interested in conveying relevant information, using non-complex words to reach all kinds of audiences. In addition to writing, he enjoys watching movies, cooking, and exploring restaurants in the city of Lagos, where he resides.
