The FinTech Ecosystem report, commissioned by GBSLEP, has been produced by Whitecap Consulting and provides the most detailed overview yet of the sector in the region. Accompanying significant in-depth analysis of the current state of the market, the report also outlines steps that can be taken to promote the continued growth of the sector.
It encourages an integrated approach to accelerate growth of the sector in the region, including the appointment of a FinTech envoy to the Treasury, pioneering a FinTech development programme, and the establishment of a representative cluster body amongst other top-level recommendations.
More than 70 stakeholders from organisations across industry and education contributed to the report. The research and analysis uncovered more than 7,625 financial services and tech-sector firms active in the region, and over 120 businesses already active in the FinTech ecosystem around the city-regions.
The sector is delivering an estimated GVA of £411.7 million per annum, or 6.2% of total UK FinTech GVA.
There has been growing momentum across the region’s tech sector, supported by exciting developments such as the recent launch of the Investment Association’s specialist FinTech hub The Engine Room, signalling confidence in the region as a location for FinTech start-ups and scale-ups.
The report provides clear recommendations to further this success over key target areas including; talent; relationship with the established financial and tech sectors; access to funding; provision and quality of physical spaces; and the role of Universities.
As the home of both the Midland Bank and Lloyds Bank, the region has a well-established history with the financial services sector, which is still visible today with HSBC UK, Deutsche Bank and Lloyds as well as associated professional services firms with significant financial services teams such as PwC and Deloitte, all present in the region.
Tim Pile, Chair of GBSLEP said: “The FinTech sector offers the West Midlands region considerable opportunities for growth. The building blocks for a thriving FinTech ecosystem are already embedded in our region, with a strong and well-established history in Financial Services, a youthful, diverse and expanding workforce, and a host of incubators and innovation centres.
“There is enormous potential to support more FinTech start-ups and scale-ups here in the West Midlands.
“Identifying new opportunities for growth and increased collaboration will play a key role in our economic recovery following the current Covid-19 crisis. I encourage stakeholders across the business community, public and educations sectors to take an active role in driving forward these recommendations to help ensure we unlock the significant untapped potential identified in this report, paving the way for future growth.”
You can view this announcement on the GBSLEP website here.