Global Fintech investment grew by 27% globally in Q3 2017 and is set to experience strong growth in 2017 according to Innovate Finance. However the picture here is a little different as the UK experienced a drop in investment over the same period. The cause is clear; Brexit has unsettled investors and corporations alike.
The UK and London in particular remains a critical Fintech global sector, with only the US and China seeing higher levels of investment in 2016. This is largely because of the convergence of skilled talent and venture capital that saw over half of all European fintech investments centred in London.
The Fintech Times sees 3 key reasons why this is likely to be a temporary blip, with London maintaining its status as a global centre in the years to come:
- Existing infrastructure is hard to replicate quickly anywhere else
- The policy and legal framework is highly supportive of start-ups and the financial sector
- London Geography between b Europe and the US allows easier access to multiple streams of capital
However nothing is guaranteed and there is no insurance against change. Providers in emerging Fintech hubs across the globe will be targeting the major players in the City of London as well as the fast growth start-ups and London companies will only survive and prosper if they can deliver good old fashioned sales success.