Commenting on the Chancellor’s package of measures to support UK fintech, including a £500,000 a year investment for fintech specialists, Warren Mead, Global Co-lead Fintech, KPMG, comments:
“The UK is a leading global force in fintech but we’re losing power to China rapidly and the announcements in the Autumn Statement will struggle to reverse the trend.
“UK fintech investment has seen a considerable decline throughout 2016 as investors keep a keen eye on the aftermath of the EU referendum and the UK’s changing relationship with America. In fact Europe has not registered a single mega-round (US$50m+ ) in 2016 while Asia has registered 12.* The rise of China is indisputable and picking up pace, four of the top five spots on this year’s top 100 fintech firms were held by Chinese companies.
“Across financial services we’re hearing people talk about technology investment but change is happening too slowly. If we look at banks, they invest just 1-2 percent of their revenue into research and development whilst in technology firms it’s more like 10-20 percent. When one of the technology giants like Google turn their attention to fintech in a serious way we will see dramatic change and it will happen fast. The question is whether Asia will be first? With the diversity of investments and widespread support for the growth of fintech hubs in the region, it’s a very distinct possibility.”