There are several factors that make a region stand out in a particular industry. If you want to be known for fintech, the following helps: an abundance of STEM talent, a significant number of banks and an inherent reputation for innovation.
Add to that the sheer number of major retailers (JD, boohoo), challenger banks (Atom, First Direct) and prime commercial real estate the North enjoys, and you can quickly see what attracts so many fintech start-ups, scale ups and unicorns.
It’s a perfect storm for fintech companies and the industry continues to grow in the region. Manchester’s BankiFi, which we invested in earlier this year after being impressed by its approach to open banking, is just one business helping the North to stand out.
So is the North set for further growth?
The answer is almost certainly. Manchester is the second most prominent fintech city in the UK and places 9th in Europe. Leeds has also been earmarked for growth, coming in at 7th in the UK while Newcastle Upon Tyne sits in 12th.
The demand for faster and less costly financial processes among businesses is also growing post-pandemic.
Banks will be looking to keep pace with an increasing number of SME solutions while more fintechs are creating valuable business models within open banking. Take our word for it, fintech in the North is an investment opportunity you can’t risk ignoring.
– Guy Weaver, Investment Director
Key Insights
- Manchester is home to 21% of tech and digital roles outside of London, with Leeds accounting for 11% [FireTech]
- There were an estimated 9,685 fintech related roles in Manchester in 2020 [Whitecap]
- The UK fintech market contributed £5.3bn to the UK economy in 2019. This is expected to grow to £24bn in 2030 [Kalifa]
