Welcome!

News Feed Item

London is Benefitting from Fintech Investment Boom, According to Accenture Study

Global investment in financial-technology ventures has more than tripled from $928 million in 2008 to $2.97 billion in 2013 and, over the past three years, such investment increased at more than four times the rate of overall venture-capital investment, according to a new report by Accenture (NYSE:ACN).

Although the United States remains the dominant market for so-called “fintech” investment, the fastest growing region is now the United Kingdom and Ireland (UKI). Deal-volume, mostly related to London, has been growing at an annualized rate of 74 percent since 2008, compared with 27 percent globally and 13 percent in Silicon Valley.

During the same period, the value of fintech investment in UKI increased nearly eightfold to $265 million in 2013. The annualized growth rate (51 percent) was nearly twice the global average (26 percent) and more than twice that of Silicon Valley (23 percent).

As a result of the rapid growth in UKI, which accounts for more than half (53 percent) of all investment in Europe, London has emerged as the fintech capital of Europe, according to the study.

“The fintech boom is a huge opportunity for London with its well-developed financial and technology industries,” said Julian Skan, Accenture managing director overseeing the FinTech Innovation Lab London. “It is also crucial to London maintaining its position as the leading global financial center because of the growing importance of technology to the financial industry.”

The growth of London’s fintech cluster has been driven by its strength in financial services and a thriving tech sector that has enjoyed an entrepreneurial renaissance in recent years. Four of the world’s ten biggest banks have either global headquarters or European headquarters situated in London. There are approximately 135,000 financial-services technology workers in UK, according to the Accenture study.

Although Ireland has a developing tech industry of its own, it is closely integrated with London’s fintech cluster by incubating fintech companies that look to London’s large financial center in pursuit of customers, talent, partnerships, and funding.

‘Challenges to overcome’

Accenture’s research analyzed global fintech investment data from CB Insights, which shows that while fintech investment in UKI is growing fast, the market is still relatively immature. Fintech companies in Silicon Valley received $950 million in venture funding in 2013 alone, while investment in UKI since 2004 has totaled $781 million. And a much larger proportion is first-round investment. Last year nearly half (47 percent) of UKI investment was first-round deals compared with 36 percent globally and 27 percent in Silicon Valley.

Julian Skan said: “For a relatively new sector, fintech is developing fast. There are growing number of incubators and accelerators and increasing interest among both the big banks and the venture capital community. But there are still challenges to overcome. It is harder to raise funding, and entrepreneurs are less focused on commercializing new ideas than in the US. It is also difficult for small entrepreneurial companies to gain entry to big global banks.”

The study, entitled “The Boom in Global Fintech Investment; A new growth opportunity for London,” was released at the second annual “Investor Day” of the FinTech Innovation Lab London. Launched in 2012 by Accenture and a dozen major banks in London, with support from the Mayor of London, the City Corporation and the Technology Strategy Board, is aimed at providing support and mentoring to early-stage fintech companies. The majority of participants in last year’s program have gone on to sign deals with banks and between them have raised $10 million in new financing.

The 2014 Lab participants are developing cutting-edge financial services applications that range from one-tap mobile payment solutions to Artificial Intelligence and using photos for login rather than a pin number. They include: Erudine, FinGenius, Logical Glue and PixelPin from the UK, PhotoPay from Croatia, Squirro from Switzerland and uTrade from India.

The Lab is a sister program to the FinTech Innovation Lab in New York, which was co-founded by Accenture and the Partnership Fund for New York City in 2010. The New York Lab’s 18 alumni companies have raised $47 million in venture financing, and created approximately 150 jobs after participating in the program.

“The rapid rise of global fintech investment is a result of the massive change occurring in the financial services industry,” said Richard Lumb, group chief executive–Financial Services at Accenture. “By facilitating digital innovation, banks will be better positioned to serve customers and improve efficiencies for the long-term. Our commitment to innovation and fintech continues to grow, not only in London and New York, but also in other key financial centers around the world.”

Methodology

The study is based on Accenture’s analysis of fintech investment-data from CB Insights, a global venture-finance data and analytics firm. The analysis included global financing activity from venture capital and private equity firms, corporations and corporate venture-capital divisions, hedge funds, accelerators, and government-backed funds. The research also included global exit activities of fintech companies – including M&A and IPOs – and a number of regional tracking dimensions for Europe, North America, and Asia-Pacific. The data ranged from 2004 to 2013, with a primary focus on five- and three-year trends. Fintech companies are defined as those that offer technologies for banking and corporate finance, capital markets, financial data analytics, payments and personal financial management.

About Accenture

Accenture is a global management consulting, technology services and outsourcing company, with approximately 281,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$28.6 billion for the fiscal year ended Aug. 31, 2013. Its home page is www.accenture.com.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Column Technologies exhibited at SYS-CON's @DevOpsSummit at Cloud Expo, which took place at the Javits Center in New York City, NY, in June 2016. Established in 1998, Column Technologies is a global technology solutions provider with over 400 employees, headquartered in the United States with offices in Canada, India, and the United Kingdom. Column Technologies provides “Best of Breed” technology solutions that automate the key DevOps principals and help our customers meet today’s DevOps and Dig...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ca...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
DevOps and microservices are permeating software engineering teams broadly, whether these teams are in pure software shops but happen to run a business, such Uber and Airbnb, or in companies that rely heavily on software to run more traditional business, such as financial firms or high-end manufacturers. Microservices and DevOps have created software development and therefore business speed and agility benefits, but they have also created problems; specifically, they have created software securi...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business. Though, IoT is far more complex than most firms expected with a majority of IoT projects having failed. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, Chief IoTologist at Wipro, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology portfolios and business models to adopt and leverage IoT. He will delve in...
In the enterprise today, connected IoT devices are everywhere – both inside and outside corporate environments. The need to identify, manage, control and secure a quickly growing web of connections and outside devices is making the already challenging task of security even more important, and onerous. In his session at @ThingsExpo, Rich Boyer, CISO and Chief Architect for Security at NTT i3, will discuss new ways of thinking and the approaches needed to address the emerging challenges of securit...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
As cloud adoption continues to transform business, today's global enterprises are challenged with managing a growing amount of information living outside of the data center. The rapid adoption of IoT and increasingly mobile workforce are exacerbating the problem. Ensuring secure data sharing and efficient backup poses capacity and bandwidth considerations as well as policy and regulatory compliance issues.