LONDON, June 21, 2016 /PRNewswire/ --
London's booming financial
technology sector drives increase in adoption of
fintech products
The UK could become a cashless society within 20 years according
to research published by London
& Partners, the Mayor of London's promotional company, to coincide with
London Technology Week
2016.[1]
(Logo:
http://photos.prnewswire.com/prnh/20130723/629764-a )
A survey of more than 2,000 consumers shows that 68 per cent
believe that cashless technologies will completely replace physical
money by 2036. The figure is higher in London where three quarters of people said
they thought cash would disappear within 20 years.
The data is supported by figures showing the rise in contactless
payment technologies. New data from MasterCard shows that
contactless spending has increased by 326% year-on-year in the
UK.
Last week the Bank of England
announced that it will be launching a fintech accelerator programme
that will work with technology companies to harness fintech
innovations. Mark Carney, The
Governor of the Bank of England
also remarked that "Financial technology companies will change the
nature of money, shake the foundations of central banking and
deliver nothing less than a democratic revolution for all who use
financial services"
London's status as a leading
financial centre and technology hub has helped the UK to become a
global leader for financial technologies. Recent research from EY
shows that the UK's fintech sector generated £6.6 billion in
revenue last year and attracted approximately £524m in investment.
The fintech sector is also a major employer supporting 61,000 jobs
more than in New York, or in
Singapore, Hong Kong and Australia
combined[2].
Speaking at an event during London Technology Week on the growth
of the capital's fintech sector, Gordon Innes CEO of
London & Partners said:
"London is the global leader for
fintech. With the world's leading financial services centre and
Europe's fastest growing
technology hub, London's fintech
companies are disrupting the current financial industry and
changing the way we interact with money. As a result, they are
attracting record levels of investment and world class talent. From
peer-to-peer lending companies, such as Funding Circle and Zopa, to
remittance companies, such as WorldRemit and TransferWise,
London's fintech companies are
pioneering the latest disruptive fintech innovations."
Also speaking at the event was Elliott Goldenberg, head of digital payments for
MasterCard UK & Ireland:
"We're in what we might call a perfect storm for payments right
now. There is this virtuous circle of creation and adoption in
fintech where tech-savvy consumers and entrepreneurs are feeding
from each other. No other market combines the expertise, the
captive audience and regulatory infrastructure in this way."
London is widely recognised as
a leading global city for the development and adoption of fintech
technologies. Figures from EY's Fintech Adoption Index show that 25
per cent of digitally active Londoners identify themselves as
fintech users compared with 14 per cent across the
UK[2].
The rapid adoption of new payment technologies has been cited by
experts as a critical factor in in the flood of investment coming
into the UK's fintech industry.
At Tuesday's event, MasterCard will unveil the latest intake of
fintech start-ups into its global Start Path programme. The UK
fintech industry is now so dominant that 25 per cent of all Start
Path businesses are British.
These include Everledger, a Whitechapel-based firm that uses
blockchain technology to authenticate and certify diamonds and
other luxury goods. Another east London business teaming up with MasterCard is
Revolut, an app that allows users to seamlessly exchange, send and
spend money around the world or online.
Eileen Burbidge, Investor and
HM Treasury Fintech Envoy said: "The UK is emerging as the
fintech centre of the world and London is the jewel in the crown of the UK's
fintech success story. With record levels of investment, access to
talent, a growing culture of entrepreneurship and progressive
policy makers and regulators, we have all of the right ingredients
for success. I am confident that London leads the likes of Silicon Valley and
Wall Street. Unlike the US, the growth of London and the UK's fintech sector is being
boosted by collaboration between key decision makers from the
financial services and technology communities, as well as the
policy makers in government."
Kevin Pearce, London
Technology Week Event Director, UBM EMEA London added: "We are
delighted to see so many fintech events at this year's London
Technology Week. There is a particular trend towards blockchain
this year which is great to see as it's an area that we know our
attendee audience is keen to learn more about. Payment technologies
and associated innovations are certainly transforming the way that
we all operate and so it's only fitting that the London Technology
Week programme addresses this thriving sector.
The consumer research by London
& Partners has been released to coincide with an event at
London Technology Week, hosted by London & Partners and MasterCard. The
event will convene leading figures from financial services and
tech, high growth startups, investors, accelerators and other
influencers to explore how fintech innovations are transforming our
lives and the world economy.
Notes to editors
[1] London & Partners commissioned YouGov to
survey 2,077 British adults. The research took place in
June 2016
[2] EY UK FinTech: On the
cutting edge report 2016
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 http://www.londonandpartners.com/
About MasterCard
MasterCard (NYSE: MA), http://www.mastercard.com, is a
technology company in the global payments industry. We operate
the world's fastest payments processing network, connecting
consumers, financial institutions, merchants, governments and
businesses in more than 210 countries and
territories. MasterCard products and solutions make everyday
commerce activities - such as shopping, traveling, running a
business and managing finances - easier, more secure and more
efficient for everyone. Follow us on Twitter @MasterCardUKbiz,
join the discussion on the Beyond the Transaction
Blog and subscribe for the latest news on
the Engagement Bureau.
About London Technology Week
London Technology Week is a festival of events, taking place
across the city and representing the entire technology
ecosystem.
No other festival of live events brings together as many
domestic and international tech specialists and enthusiasts to
London for such a variety of
networking, social, learning and business opportunities.
London Technology Week is organised by UBM EMEA, in association
with founding partners London
& Partners, ExCeL London and Tech London Advocates, with
support from strategic partners Tech City UK, UKTI and techUK.
Since its launch in 2014 London Technology Week has included
more than 400 events and has welcomed delegations from around
the world.
For more information about London Technology Week, visit:
http://londontechnologyweek.co.uk/
About UBM EMEA
UBM EMEA (http://ubmemea.com/) connects people and creates
opportunities for companies across five continents to develop new
business, meet customers, launch new products, promote brands and
expand markets. Operating in more than 23 countries, UBM EMEA
organises many of the world's largest, most important live events,
awards and community sites in a wide variety of industries. Its
technology events include Technology for Marketing, eCommerce Expo,
Black Hat Europe and London Technology Week.
SOURCE London Technology Week