TECH KEY TO CITY’S GROWTH
City poised for boom in financial service sector
There is much to be proud of and we have a great story to tell Tom Riordan chief executive, Leeds City Council
LEEDS CITY Region’s financial technology (fintech) industry has significant potential for growth, driven by increasing interest from the established financial services sector, according to a new report published at the weekend. The Leeds City Region Fintech Ecosystem Report was compiled by regional strategy consultancy Whitecap Consulting, which looked at all aspects of the city region’s fintech ‘ecosystem’, including the start-ups, incubators, technology firms, professional and financial services companies, universities and local government.
It found the industry is in a strong position in terms of its financial services, data and technology sectors, with a clear demand for fintech innovation and partnerships from established financial services and technology organisations in the region.
But it also claims that Leeds City Region has yet to fulfil its fintech potential given the current low numbers of fintech start-up and scale-up firms, and a lack of hubs and workspaces dedicated to fintech in the region.
It also highlights deficiencies in the communication and engagement between funders and fintech innovators, concluding that the ecosystem is only partially formed, and has substantial potential for growth.
Tom Riordan, chief executive of Leeds City Council, which supported the report, said the research was of strategic importance to Leeds City Region and further strengthened the financial and professional services network.
“There is much to be proud of in the region and we have a great story to tell,” he said.
“The council, universities, schools, innovators and entrepreneurs have all played their part in creating growth to date. I believe this ecosystem research will provide further momentum to encourage investment in Leeds and the city region as a fintech centre of excellence, presenting a significant opportunity post-Brexit.”
Leeds City Region is the UK’s largest economy and population centre apart from London.
It is home to 119,000 companies with an economy valued at £66.5bn per annum, of which the city of Leeds accounts for an estimated £21.3bn.
Leeds itself has a relatively large banking sector, with proportionally more than twice as many banking jobs within the workforce as Greater London. Whitecap’s report estimates there are currently 2,600 people working in fintech in Leeds – around five per cent of the total financial sector employment.
This suggests substantial upward potential compared with London, where fintech is estimated to account for over 15 per cent of the financial sector workforce.
The report was supported by Leeds City Council, CYBG, First Direct, Yorkshire Building Society, Bruntwood, Equiniti Credit Services, Nexus (University of Leeds), Leeds Beckett University, and FinTech North.
Founded in 2012, Whitecap Consulting is a regional strategy consultancy headquartered in Leeds, with offices in Manchester, Milton Keynes, Bristol and Newcastle. In 2016, it co-founded FinTech North to help promote the region’s growing fintech activity.
Whitecap’s managing director, Richard Coates, said: “For many years, Leeds City Region has had a vibrant and diverse financial services industry which has been supported and enhanced by its data, technology and digital sectors.
“We are delighted to have worked with key stakeholders from Leeds City Region to produce this report, which it is hoped will set a foundation for future growth for this exciting and rapidly developing sector.”