London has strengthened its position as the global center for fintech companies. Due to its ever-increasing tech communities, it is expected to remain the same for several years.
FREMONT, CA: Across Europe, the UK presently resides as the top destination for fintech ventures. The capital boasts over a thousand fintech headquarters, including TransferWise, Checkout.com, Oak North, Funding Circle, and Finastra. London is the center of disruptive finance reforms, backed by regional tech centers like Manchester, Belfast, Cambridge, and Edinburgh. Some may observe that San Francisco, Singapore, or Zurich have overhauled London’s fintech sector. But these intense competitors lag in direct investments, healthy environment, and chronicle of financial services. The pandemic has generated turmoil worldwide but presented a window of possibility for fintech businesses.
The resilience of London’s tech scene is indisputable. Born under the harsh conditions of the financial crisis, it has undergone several modifications, and Brexit will not stop this. The industry brought over £9 billion in 2019, compared to £5.2 billion after the referendum. While difficulties continue to rise, the fast-developing sector is not slowing down, and coronavirus will not be the difference. The latest economic eruption also has the foresight of an accelerated end to cash and bank departments. Social trends have been changed unprecedentedly, pointing to the final demise of cash. Lockdowns and social distancing are having invariable consequences on consumer inclinations. With the UK Government actively promoting online retail, E-commerce will soon make up 40% of all sales.
London’s tech ecosystem has surmounted many difficulties to strengthen its global position, and for fast-developing fintechs, it is practically heaven. The existing challenges may hinder early-stage businesses dependent on capital investments, but they also present a valuable digital and tech opportunity. Digital finance services will grow more mainstream, making the industry more critical. In rebellion against the adversaries posed, London’s position as a fintech center remains rock solid and unquestionably will endure being so.