London & Partners: London's Financial Technology Boom Spurs Rapid Rise in Use of fintech Products
15.10.2015 03:00 | Business Wire
The capital’s booming financial technology sector is being driven by record levels of investment and the rapid adoption of fintech products by young and wealthy internet users, according to new research compiled by London & Partners, The Mayor of London’s promotional company, and EY.
Venture capital investment in London fintech has rocketed from £24m in the whole of 2010 to £312m in the first six months of this year alone1. Over the last 10 years London has attracted 1000 international tech investment projects – which is not only more than any city, but more than any other country in Europe2.
While investment is increasing, data being made available by global professional services firm EY, which is due to be released in full next year, shows that wealthy young Brits are adopting new fintech products at a rapid rate. In the last six months, 35 per cent of the United Kingdom’s online population has used at least one fintech product, and people’s usage increases in line with their income. The highest rate of fintech use is amongst those aged between 25 and 44 and earning over £50,000.
Use of fintech products is growing rapidly - an additional 8% of the UK’s online population is set to start using fintech products over the next 12 months, in particular online payments and investment products - making the UK one of the most advanced and attractive fintech markets in Europe.
Further analysis by MasterCard shows the UK is one of the world’s leading economies for cashless transactions, being driven by financial technologies such as contactless payments on the London Underground. Spending by British consumers on their contactless cards has increased more than five-fold (560%) in the last 12 months3.
Mayor of London Boris Johnson, who is on a three-day trade mission to Japan, where he is meeting with senior politicians, business leaders and investors to foster collaboration between London and Japan, said: “Londoners are embracing financial technology as the use of contactless on the London Underground and mobile payments used throughout the city shows. As our expertise flourishes in this area, I am delighted companies based in London are taking their goods to Japan and we are now sharing that knowledge and experience with our Japanese counterparts to further fuel this innovation and growth.”
Imran Gulamhuseinwala, EY’s head of fintech in EMEIA, comments: “At approximately £20bn of revenues, the UK has a world leading fintech footprint. Crucially we estimate that as much as 20 per cent is generated from the high growth "emergent" fintech segment including online payments, online security and marketplace lending. Our analysis found that the UK is a very attractive location for fintech startups and that international fintech startups, founded outside of the UK often move here to use the UK market as a platform for internationalisation. We think there’s potential for the UK fintech industry to generate an additional £16bn of revenues by 2020.”
During an event attended by the Mayor, at the British Ambassador’s residence in Tokyo, WorldRemit, a London-based money transfer service, also announced plans to make its mobile payment services available to the Japanese market later this year. The event was held to demonstrate that Japanese firms are ideally placed to collaborate with London’s growing financial technology sector in the run up to the Tokyo 2020 Olympic, particularly when it comes to embracing the latest in contactless payment methods that have been pioneered in London.
Ismail Ahmed, founder and CEO of WorldRemit, which raised £65 million in venture capital funding earlier this year, said: “There is a tremendous opportunity in Japan for fintech to transform financial services for the better.
“We’re offering Japan – which so far has been ill-served by the remittance market - a money transfer app that makes sending money abroad as easy as sending an instant message. As an early adopter of mobile technology, Japan is now poised to be a leader in mobile financial services.”
Five of London’s 14 tech start-ups with over £65m of total funding are in the fintech sector and the city has been growing start-ups into global brands, such as Funding Circle and WorldRemit. London also has one of the most talented work forces in the world, with more skilled fintech workers than traditional giants such as Silicon Valley4, to support this rapid growth.
Eileen Burbidge MBE, Partner at Passion Capital and technology ambassador for London, added: “London is rapidly becoming one of the most exciting cities in the world for fintech. Collaboration between London and Tokyo, two tech powerhouses, will accelerate engagement with financial technology ahead of the 2020 Olympics, spurring an opportunity for growth in other sectors.”
Gordon Innes, CEO at London & Partners added: “London’s status as the leading global financial centre and its world-class tech hub makes it an ideal destination for international fintech entrepreneurs and investors. London leads the way in the development of financial technologies such as mobile payments and digital currencies and is home to some of the world’s fastest growing fintech businesses such as TransferWise and WorldRemit. With a number of leading Japanese banks and technology companies already with a presence in London, Tokyo is a natural partner for London to share our fintech success and to collaborate on growing the sector in both countries ahead of events such as the 2020 Olympics.”
There is already a strong relationship between Japan and London, with Japanese banks, telecoms and pharmaceutical companies already well established in the city. The United Kingdom is the favourite place in Europe, and second only to the USA, for Japanese companies looking to invest worldwide. Japanese outbound M & A to the UK has reached a record £8 billion so far this year a figure which has doubled over the last five years5.
Since 2010 Japanese companies have invested over £14 billion in over 630 worldwide tech companies, which is by far the most popular industry sector by number of deals. Japanese companies have invested £115million in 19 UK6 tech start-ups in the last five years.
Rakuten, Japan’s largest internet services company, has invested in a number of European tech companies, including joining a £12m round of investment in London-based fintech company, Currency Cloud.
Hiroshi Mikitani, CEO Rakuten, Inc, said: “London’s standing as a leading global financial center is undisputed. Rakuten has already made a strategic investment in London fintech with Currency Cloud and we are closely watching London as a source of compelling investment opportunities, innovative technology and great people.”
Investment in Japan-based fintech companies has also increased rapidly by 106 per cent between 2013 and 20147 alone. While purchases on credit cards in Japan are expected to pass £328 billion in 20208 due to increased uptake from residents and also foreign visitors who prefer cashless payment solutions for the Tokyo Olympics.
MasterCard analysis has predicted that Japan, with its leading financial services centre in Tokyo and increasing support from the government for new technologies, is one of the Asian countries most ready to embrace advances in cashless payment technology9.
Mark Barnett, President of MasterCard UK and Ireland, commented: “The UK and Japan have great similarities as developed economies with urban areas of population density, but differ when it comes to the usage of cash and electronic payments. In the UK, MasterCard has partnered with the likes of Transport for London to bring payment innovation to the public. However, our analysis suggests that the two nations are not so different when it comes to readiness to evolve payment choices, so there is a huge opportunity to work together and increase electronic payments in Japan, especially ahead of premier international sporting events such as the 2020 Tokyo Olympics and Rugby World Cup 2019.”
Notes to Editors
About London & Partners.
London & Partners is the official promotional company for London. We promote London and attract businesses, events, congresses, students and visitors to the capital. Our aims are to build London’s international reputation and to attract investment and visitor spend, which create jobs and growth.
London & Partners is a not-for-profit public private partnership, funded by the Mayor of London and our network of commercial partners. For more information visit www.londonandpartners.com
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.
The company was founded in 2010 by Ismail Ahmed, a remittance specialist and former compliance advisor to the United Nations. Personal experience of using money transfer agents convinced Ismail that technology could improve the sending process, enhance compliance and reduce costs to the customer.
In addition to offering bank deposit and cash pick-up options, WorldRemit is the leading provider of instant transfers to Mobile Money wallets. In January 2015, the company announced a partnership with telecoms giant MTN, enabling transfers to all 16 of the company’s Mobile Money services. Customers can also send mobile airtime top-ups. More than 50% of all WorldRemit transfers to Africa are currently received as Mobile Money or mobile airtime top-up.
WorldRemit’s London headquarters have grown from around 40 staff in early 2014, to its current headcount of more than 150. Denver, Colorado was unveiled as WorldRemit’s U.S. base in December 2014, with plans to recruit more than 200 staff. WorldRemit is a member of the Future Fifty, a group of high-growth technology companies, and part of the Tech City UK organization.
Dealogic offers integrated content, analytics, and technology via targeted products and services to top financial firms worldwide. Whether working in capital markets, sales and trading, banking, or compliance, firms rely on the Dealogic platform to connect and more effectively identify opportunities, execute deals, and manage risk. With more than 30 years’ experience and a deep understanding of financial markets, Dealogic is a trusted global partner.
Dealogic provides the most timely and accurate data available and is relied on by more than 100 of the world’s financial publications for the most insightful analysis of investment banking.
Rakuten, Inc. (TOKYO: 4755) is one of the world's leading Internet services companies, offering a wide variety of services for consumers and businesses with a focus on e-commerce, finance, and digital content. Since 2012, Rakuten has been ranked among the world’s ‘Top 20 Most Innovative Companies’ in Forbes magazine’s annual list. Rakuten is expanding worldwide and currently operates throughout Asia, Europe, the Americas and Oceania. Founded in 1997, Rakuten is headquartered in Tokyo, with nearly 12,000 employees worldwide.
Rakuten internet finance is one of three key strategic pillars and a major contributor to the Rakuten Group. Rakuten Card has been ranked number one in Japan in customer satisfaction for six consecutive years* and has recently expanded to the US and Taiwan. Rakuten Bank holds the highest number of accounts among internet banks in Japan, while Rakuten Securities is dynamically developing best-in-class net-based securities services. In 2013, Rakuten expanded into the rapidly growing online life insurance market.
*Service Productivity & Innovation for Growth (SPRING), 2014 Japanese Customer Satisfaction Index
1 London & Partners and CB Insights
2 EY – Tech Sector Analysis June 2015
3 MasterCard August 2015
4 South Mountain Economics 2014
5 Dealogic analysis Oct 2015
6 Dealogic analysis Oct 2015
7 Accenture Fintech Report Oct 2015
8 Accenture Fintech Report Oct 2015
9 MasterCard Cashless Journey Oct 2015
London & Partners
Tel: +44 (0)7920 759 018
or +44 (0)207 234 5710
Om Business Wire
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Følg saker fra Business Wire
Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.
Siste saker fra Business Wire
IFF to Present at the Barclays Global Consumer Staples Conference21.8.2017 20:15 | Pressemelding
Regulatory News: International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext Paris:IFF), a leading innovator of sensory experiences that move the world, today announced that Andreas Fibig, Chairman and Chief Executive Officer will present at the Barclays Global Consumer Staples Conference in Boston, MA on Thursday, September 7, 2017 at 11:15 a.m. EDT. Investors may access the live webcast and accompanying slide presentation on the Company's website at ir.iff.com. For those unable to listen to the live webcast, a recorded version will be made available for replay. Meet IFF International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext Paris:IFF) is a leading innovator of sensorial experiences that move the world. At the heart of our company, we are fueled by a sense of discovery, constantly asking “what if?”. That passion for explorati
Celularity, Inc., Accelerates Breakthrough Placental Discovery & Therapeutic Platform21.8.2017 20:11 | Pressemelding
Celularity, Inc., a newly formed biotechnology company, today announced its acceleration of cell and tissue regenerative therapies to address unmet medical needs in cancer and chronic and degenerative disease. Celularity completed their Series A financing with contributions from several biopharma companies, including Sorrento Therapeutics, United Therapeutics Corporation and Human Longevity, Inc., and entrepreneurial investors. Celularity has been created through the contributions of extensive intellectual property, clinical-stage assets, basic and clinical research, and development expertise including: Several clinical-stage immuno-oncology and regenerative medicine assets and a pipeline of pre-clinical assets Proprietary allogeneic (“readily accessible”) immunotherapy platform 200+ issued and pending patents in cell therapy
European Commission Grants New Indication for Soliris® (Eculizumab) for the Treatment of Patients with Refractory Generalized Myasthenia Gravis (gMG)21.8.2017 13:25 | Pressemelding
Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) announced today that the European Commission (EC) approved the extension of the indication for Soliris® (eculizumab) to include the treatment of refractory generalized myasthenia gravis (gMG) in adults who are anti-acetylcholine receptor (AChR) antibody-positive. Soliris is the first and only complement-based therapy approved in the European Union (EU) for this ultra-rare subset of patients.1-4 Patients with refractory gMG can have difficulties walking, talking, swallowing and breathing normally despite therapies currently used for MG. Exacerbations and crises of their disease may require hospitalization and intensive care and may be life-threatening.5-7 Soliris will be launched for this new indication initially in Germany, and Alexion is evaluating launches in additional EU countries. “Patients with refractory gMG have exhausted multiple the
IntegenX Applauds the Passage of the Rapid DNA Act of 201721.8.2017 12:00 | Pressemelding
IntegenX Inc., the global market leader for Rapid DNA human identification, applauds the signing into law of S.139 and HR.510, The Rapid DNA Act of 2017. The legislation will allow law enforcement agencies, under standards and guidelines established by the FBI, to perform real-time DNA testing at time of arrest, within booking stations. Similar to how fingerprint analysis has evolved from a paper and ink practice to a point-of-action technology, DNA testing has now become possible in 90 minutes within a booking station, while a suspect is still in custody. With processing times reduced from weeks to less than two hours, the potential to identify or exonerate a suspect quickly will make a meaningful impact on law enforcement. IntegenX thanks U.S. Senate sponsor Senator Orrin Hatch (R-UT) and lead co-sponsor Senator Dianne Feinstein (D-CA) as well as House sponsor Congressman
PPG Completes COLORFUL COMMUNITIES Project at Primary School in Kecskemét, Hungary21.8.2017 08:03 | Pressemelding
PPG (NYSE:PPG) today announced the completion of a COLORFUL COMMUNITIES™ project in Kecskemét, Hungary, that helped revitalize the learning environment of the Corvin Mátyás primary school. The Colorful Communities program provides PPG volunteers and products along with financial contributions to bring color and vitality to communities where the company operates around the world, such as in Kecskemét, where the PPG automotive service team operates with 33 employees. The project brought together more than 140 PPG and community volunteers who spent three days at the school revitalizing four classrooms, four changing rooms and the playground. PPG provided more than $20,000 to assist with the project, including more than 460 liters of Héra ® Prémium waterborne interior paint and Trinát ® Aqua wate
Glennmont Partners Completes Refinancing of Sleaford Biomass Plant for £150m21.8.2017 08:00 | Pressemelding
Glennmont Partners has successfully completed the refinancing of the Sleaford Renewable Energy Plant on behalf of its dedicated clean energy fund, Glennmont Clean Energy Fund Europe I, as part of a programme of realisations of value from the Fund. Glennmont Partners is one of Europe’s largest fund managers focusing exclusively on investment in clean energy infrastructure. Glennmont raises long-term capital to invest in alternative power generation projects including wind farms, biomass power stations, solar parks and small-scale hydro power plants. The carefully selected, risk managed investments deliver sustained performance and predictable returns over periods of 10 years or more. Sleaford REP is a 40MWe straw-fired biomass plant located in Lincolnshire, UK. The plant has been in operation since 2014 and is being operated by Burmeister & Wain Scandinavian Contractor (BWSC). The
I vårt presserom finner du alle våre siste saker, kontaktpersoner, bilder, dokumenter og annen relevant informasjon om oss.Besøk vårt presserom