The survey was commissioned with the aim of helping fintech leaders in the UK continue to help the industry thrive. A number of suggestions in the study were then submitted to government officials with the hopes the UK can reignite the sector and build on its strong foundation, according to the survey. For example, some have called for a Secretary of State for Technology as one possible step toward that end. “In some respects, there is a feeling that we have become complacent about the UK Fintech sector and its dominance globally,” according to the article.
Attracting talented individuals was one significant challenge cited by respondents, with that obstacle extending beyond just engineers and product professionals to “suitably experienced financial services professionals” Per the survey, close to two-thirds of the fintech founders who responded consider the UK the global leader in the sector, but only one-third of respondents are “optimistic” or “very optimistic” the UK will maintain that position over the next five years.
Raising growth capital, know-your-customer and anti-money laundering requirements, and Brexit were cited as potential challenges for UK fintechs. Specifically, the survey shows 69% of respondents said they are “worried” or “extremely worried” that Brexit will have a negative impact on their businesses.
A separate study, the Global FinTech Adoption Index 2019 (PDF), published earlier this summer by EY, shows other nations like China and India actually have a higher share of their “digitally active population” adopting fintech compared to the UK, and for that matter, every other nation measured. According to that study, as a percentage of that subset, 87% of digitally active people in both China and India have adopted fintech, compared to 71% in the UK. Globally, the average is 64%, up from 16% in 2015.
Per the report: an “adopter" is defined as someone who “has used two or more ‘buckets’ of services,” with a “bucket” meaning a “major FinTech service, or two or more related services, such as online stockbroking and online investment advice.”
After China and India, Russia and South Africa come in at 82% each. Following them are:
- 76% Colombia
- 75% Peru
- 73% Netherlands
- 72% Mexico
- 71% Ireland
- 71% UK
- 67% Argentina
- 67% Hong Kong SAR of China
- 67% Singapore
- 67% South Korea
- 66% Chile
- 64% Brazil
- 64% Germany
- 64% Sweden
- 64% Switzerland
- 58% Australia
- 56% Spain
- 51% Italy
- 50% Canada
- 46% USA
- 42% Belgium and Luxembourg
- 35% France
- 34% Japan
China’s also has an exceptionally high small-to-medium enterprise (SME) adoption rate due to its widespread use of “financial platforms and ecosystems.” According to the reports, if China were not included in the global SME adoption average, which is 25%, the average rate would drop at 17% and make the U.S. the global pacer at 23%.
“FinTech is an industry that has evolved beyond its early stages to significantly move the dial on customer expectations. FinTech challengers are looking less like start-ups and more like professionally managed companies with broad operational capabilities, a full suite of products and a global reach,” according to the adoption index. “Many of these companies have been through several rounds of fund-raising, increased their staff, created corporate departments such as human resources, accounting and legal, and expanded beyond their home markets.”
