The report ranked Britain first amongst the world’s seven leading FinTech hubs, from Silicon Valley to Hong Kong, having compared these FinTech markets against four key criteria: the availability of talented staff, access to investment, the nature of government and regulatory policy, and the demand for FinTech services.
The report found that the UK has a particularly good policy environment for FinTech, with the most supportive regulatory regime, and praised the Financial Conduct Authority (FCA) as one of the most progressive regulatory bodies in the world when it comes to FinTech.
Chancellor George Osborne said:
In 2014 I said I wanted Britain to be the global capital of FinTech. This report says that we have delivered exactly that: we have the most supportive tax and regulatory regimes in the world for FinTech, and we have the world’s leading FinTech ecosystem.
But we’re not going to rest on our laurels. I know that we need to do more if we want to maintain this position, and so I welcome the report’s recommendations.
We are defining the future of global banking right here in the UK. This is all part of our long term plan to cement Britain’s position as the centre of global finance.
EY attribute Britain’s No 1 ranking to a deep talent pool, the strong availability of capital for investment in Fintech Start-ups, the most supportive government policy towards Fintech, and high-demand from clients in London’s world-leading financial services sector.
The government announced that it would launch this exercise in July 2015 in order to track how the UK ranks against its international FinTech competitors.
EY’s conclusions are based on detailed analysis of FinTech practises across the globe, and interviews with over 65 FinTech experts. The report also makes a number of recommendations, in order to ensure that the UK cements its position as the world’s leading FinTech ecosystem. The government welcomes these recommendations, and is considering how best to take them forward.
Britain’s FinTech sector supports over 61,000 jobs and generates billions of pounds of revenue for the UK’s economy. Its development has kept the UK’s financial services sector on the cutting edge of innovation, and has increased competition and choice in banking, helping customers and businesses to get better services.