The North East region has been identified as an emerging hotbed for fintech scale-ups and start-ups which have “almost doubled” since 2019.
As recent figures revealed child poverty has surged in the region and with inflation at a 40-year high, how are so many fintech innovators emerging and what are they doing to tackle the cost of living crisis?
Once largely restricted to ‘Silicon Roundabout’ in East London, emerging and established fintech clusters are now thriving across the UK – including in the North East.
The fintech sector, which covers private and public companies providing services, innovations and solutions in the financial services space, has accelerated at pace over the past decade with a notable investment boom outside of London.
“Investment into fintech in the UK in 2021 was more than double what it was in 2020 so despite everything with Covid, the fintech sector was really flying,” Julian Wells, Director at regional consultancy firm Whitecap Consulting, told Prolific North.
According to Innovate Finance, the industry body for the UK fintech sector, there has been a staggering 237% increase in investment outside of London and the South East, boosted from $206m in 2020 to $696m in 2021.
Both Newcastle and Durham were recognised in the Kalifa Review of UK fintech in 2021 as one of the top 10 fintech clusters in the UK. Whitecap Consulting, also the co-founder of ecosystem facilitator FinTech North, has been collaborating with the public, private and higher education sectors on a three-year North East fintech strategy set to be revealed in September.
Following the vision and recommendations from the review to promote connectivity between fintech clusters and enhance overall national activity, the strategy will aim to pave the way for further expansion and jobs in the region.
With the spotlight steering away from London, the number of fintechs in the region have “almost doubled” since 2019, said Wells, who was unable to reveal more until the strategy is finalised.
