Huge growth in the FinTech sector in the Leeds City Region means it’s now home to more than 100 FinTech firms and is contributing more than £700m per year to the regional economy.
A report by Whitecap Consulting is published at a time when the financial sector in the region is thriving, buoyed by the decisions of the Financial Conduct Authority, UK Infrastructure Bank and Bank of England to establish bases in Leeds.
More than 100 FinTech firms have been identified in the Leeds City Region, the vast majority of which are start-ups and scale-ups, a segment which has trebled in number over the last three years. Core strengths are visible in payments, lending, financial regulation, wealth management and banking.
The region is already home to more than 60 established national and international financial services organisations, all of which are active in FinTech, including numerous banks and lending firms, and three of the UK’s largest building societies. Leeds is also the only city outside London to be home to all three of the UK’s major credit reference agencies.
The new report is the result of a research project which was funded through sponsorship and support from Leeds City Council and other key organisations such as Leeds Building Society, LexisNexis Risk Solutions, Bruntwood SciTech, Cloud Gateway, Equiniti, the University of Leeds, FinTech North and the Leeds City Region Enterprise Partnership. It is the third report published by Whitecap on the Leeds City Region, with its previous one being published early in 2020, just before the onset of the COVID-19 pandemic.
Councillor Jonathan Pryor, Leeds City Council’s executive member for economy, culture and education, said:“Leeds has plenty to be proud of, not least the new Centre for Green Finance at the University of Leeds, the UK Infrastructure Bank and the Bank of England as well as the Financial Conduct Authority’s recent move to the city, and the recognition of Leeds as part of an established FinTech cluster. FinTech start-ups, scale-ups and leading institutions alike are recognising Leeds as an exciting space for innovation and opportunity.”
Richard Fearon, chief executive at Leeds Building Society, said:“Tech and innovation are integral to providing the modern financial services that the Leeds City Region has become synonymous with. One-in-five of our people at Leeds Building Society hold a digital or tech role and they are fundamental to us delivering for our members. A thriving local FinTech industry also has a major role to play which is why we have been delighted to support this report.”
Whitecap’s analysis shows growth of 263 per cent in the number of FinTech start-ups and scale-ups with a presence in the region, which now amount to 87 firms. In total there are 107 FinTech firms, and more than 200 firms identified as operating in the FinTech sector, including financial services and tech firms.
The sector has been boosted in recent years by the decisions of organisations such as LHV Bank, Iwoca, Recognise Bank, Global Shares and PEXA to establish bases in the region. New start-ups over the last two years include Answer Pay and Tred.
