Click here to read the report in full.
FinTech Wales, an independent membership association and champion of the Fintech and Financial Services industry in Wales, has today (11 December 2023) published the Fintech in Wales Annual Report for 2022/23. Now in its second year, the report provides an insightful overview of the thriving fintech ecosystem in Wales and makes key recommendations for the future growth and success of the industry.
The report records a significant 300% increase in investment since 2022, with records of £53 million in publicly announced investments made up until October 2023. It also applauds the international success Welsh fintechs have achieved through various expansion, partnerships and acquisitions.
It is estimated that over 16,000 people are employed in fintech in Wales, and whilst the employment landscape has remained stable over the last year, there is a positive outlook for 2024 with established organisations, particularly banks and professional services consultancies, planning to create a thousand job opportunities to contribute to the thriving sector.
Louise O’Shea, Chair of FinTech Wales said on the report: “There is so much to be proud of in the Welsh fintech sector and the report allows us to shine a light on these successes and shout about the progress we are making. All of which has earned Wales a reputation as a hub of excellence for financial technology.
“We’ve seen a significant increase of funding from various sources, which has propelled the industry’s expansion, resulting in a stable and positive employment outlook. We are also delighted to see international expansion from Welsh fintechs. These achievements speak volumes about the skills, talent, and innovation present within our ecosystem.”
Elsewhere in the report, it looks at Wales’ commitment to gender diversity and inclusivity and highlights the Gender Index 2023 Report that states there are currently 22,900 active, female-led companies across the nation. This equates to 34.6% of Welsh businesses that have a woman in a leadership position — a higher proportion than any other UK nation. Louise continues: “While there is still work to be done, the progress made in this area sets us apart from other areas in the UK and showcases our dedication to creating an inclusive and equal industry where everyone has the opportunity to thrive.”
The report also highlights other areas which have seen significant growth in 2022/23, including the ‘fintech for good’ sector, which aims to proactively address issues such as the cost of living.
Sarah Williams-Gardener, CEO of FinTech Wales, commented: “Collectively, we have seen the industry respond to consumer shifts such as the changing nature of vehicle use, which has led to the modernisation of motor insurance, and by harnessing open banking we’ve seen significant advancement of digital banking with positive consumer outcomes. This, as well as the increased collaboration between established incumbents and innovative fintechs, is critical and increasingly Wales is standing out for its success in fostering mutual economic growth.”
To ensure the continued success and development of the Welsh fintech sector, FinTech Wales has put forward several recommendations in its annual report, which includes increasing funding to support further growth, developing the necessary skills within the industry, fostering collaboration with adjacent industries and key infrastructure providers, renewing and strengthening support for scaling businesses, and ensuring continued government support.
Sarah continued: “Overall, the fintech industry in Wales has experienced significant growth, secured stable employment, and made advancements in various sectors. The potential for international expansion, combined with the industry’s dedication to gender diversity, positions Welsh fintech as a promising and dynamic sector within the global fintech landscape. With the implementation of the recommended measures, Wales will continue to firmly establish itself as a leading global hub for fintech innovation, setting the benchmark for excellence in the industry.”
Story credit: FinTech Wales
