The United Kingdom is the new FinTech capital of the world, according to the latest research.
Britain has snatched the crown once worn by Silicon Valley, an independent EY report has revealed.
The report ranked the UK top of the seven leading FinTech hubs, which includes California, New York, Singapore and Hong Kong.
EY looked at four key criteria, the availability of talented staff, access to investment, nature of government and regulatory police and demand for FinTech services.
The report found that the UK had a 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.
While the UK was ranked first overall and had the strongest policy environment, California had the best talent and availability of capital.
The study, commissioned by HM Treasury, looked at FinTech practices around the world and interviewed 65 experts.
Britain’s FinTech sector supports 61,000 jobs, more than the New York City Fintech or the entire sector of Hong Kong, Singapore and Australia combined, according to report, and generates billions of pounds of revenue for the UK economy.
But the report came with a warning that “strong” competition from other regions is emerging with some becoming “increasing progressive” in their use of Government and regulatory policy.
Harriet Baldwin, Economic Secretary to the Treasury, opened the report by saying: “FinTech – is fundamentally changing the way financial services firms operate and transforming the way we transfer, borrow, protect and manage our money.
“Just as the UK is the financial capital of the world, so we are also a leading FinTech capital, with increasing FinTech activity taking place across the financial sector.
“Small start-ups and innovation within existing large financial services firms is creating jobs and attracting investment. The sector has now grown from its disruptive roots into an industry in its own right – generating £6.6 billion in revenue in 2015.”
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.”
The world’s top FinTech centres:
Download – Executive summary