City of London is a key global hub for fintech companies
The City of London has become a key global hub for fintech companies over the past decade, according to UHY Hacker Young.
Research from the national accountancy group showed significant growth in the City’s economy, making it the strongest in the UK over the past decade.
The City’s economy was found to have grown at double the speed of the national average, despite predictions that it would shrink after the banking crisis in 2008.
The research revealed the City’s growth rate in Gross Value Added (GVA), which measures an area’s economic contribution to the UK based on the value of goods and services produced per capita.
The City’s GVA was found to have grown by 24 per cent since 2008, rising from £236,356 to £292,855 per head, higher than the national average, which increased by 12 per cent, rising from £22,873 to £25,601.
According to UHY Hacker Young, the City has maintained its core financial services industry and has also reinvented itself as an ecommerce and fintech centre, with areas within the City and nearby, such as Shoreditch and Old Street, now becoming top spots for fintech businesses.
UHY Hacker Young Partner Colin Jones commented: “When the crisis was at its height, many predicted a decline in the importance of the City’s economy, but instead it has proven to be resilient and still easily outpaces other major UK cities. Indeed, its growth is still primarily driven by its huge wholesale financial services industry.”
He added: “Along with its traditional strengths in investment banks and professional services firms, the City is now also host to more fintech and non-traditional financial services industries. Over the past decade, London has become a key global hub for fintech companies.”