Leeds City Region’s FinTech sector to double in size since 2020

A new report from Whitecap Consulting shows that the FinTech sector in the Leeds City Region has experienced tremendous growth over the past three years, is now home to more than 100 FinTech firms and contributes more than £700m per year to the regional economy.

The region is already home to more than 60 established national and international financial services organisations, all active in FinTech, including a number of banks and lending firms, and 3 of the UK’s largest construction companies. Leeds is also the only city outside of London to be home to all 3 of the UK’s major credit reference agencies.

Richard Fearon, Chief Executive of Leeds Building Society, says:

“Technology and innovation are integral to providing the modern financial services that Leeds City Region has become synonymous with. One in five of our staff at Leeds Building Society has a digital or technology role and they are fundamental to our delivery for members ours. A thriving local FinTech industry also has an important role to play, which is why we’ve been delighted to support this report.”

The new report is the result of a research project which was funded through sponsorship and support from organizations including: Leeds City Council, Leeds Building Society, LexisNexis Risk Solutions, Bruntwood SciTech, Cloud Gateway, Equiniti, University of Leeds, FinTech North and Leeds City Region Enterprise Partnership. It is the third report published by Whitecap on the Leeds City Region; the last one was published in early 2020, just before the outbreak of the Covid pandemic.

Tom Riordan, Chief Executive of Leeds City Council, says:

“Whitecap Consulting has provided structure and clarity to the FinTech ecosystem in this report, and the in-depth research and analysis both quantifies and qualifies the strength, growth and maturity of the sector. It’s great to see double-digit growth across all key metrics since 2020, and the report recognizes the diversity and key strengths across the spectrum of tech sub-sectors, from RegTech to LegalTech.”

Whitecap’s analysis shows a huge growth of 263% in the number of FinTech startups and scaleups with a presence in the region, which now amounts to 87 firms. In total, there are 107 FinTech firms, and more than 200 firms identified as operating in the FinTech sector, including financial services and technology firms. The sector has been strengthened in recent years by decisions by organizations such as LHV Bank, Iwoca, Recognize Bank, Global Shares and PEXA to establish bases in the region. New startups in the last 2 years include Answer Pay, the UK’s first certified provider of Request to Pay services, and Tred, which claims to be the only FinTech in Europe that is both B-Corp pending and a member of 1% For The Planet.

Steve Elliot, Managing Director, LexisNexis Risk Solutions (UK & Ireland), says:

“LexisNexis Risk Solutions is proud to have supported this report and to play an active role in the economic prosperity of the Leeds City Region, which as this report shows, has experienced strong growth. We acquired Leeds-born technology start-up TruNarrative in August 2021 and are proud to have a home in Leeds and to create a number of exciting job opportunities as we continue to grow the team supporting the LexisNexis RiskNarrative orchestration platform.”

Deb Hetherington, Head of Innovation Services at Bruntwood SciTech, said:

“FinTech has long been a high-profile feature of the Leeds economy, bridging the gap between the vibrant technology and finance sectors in the region. The strength of FinTech in Leeds evident in this report is also reflected in the organizations based on our platform technology and digital workspace, where FinTech is prominent alongside other fast-growing digitally-led sectors such as LegalTech and HealthTech. We look forward to playing our part in the sector’s continued success over the coming months and years.”

Chris Sier, HM Treasury FinTech Envoy for England, Chair of FinTech North, Visiting Professor at the University of Leeds and Chair of ClearGlass, says:

“Over the past few years we have seen the accelerated development of FinTech across the regions of the UK, with increased national focus coming via initiatives such as the Kalifa Review, the FinTech National Network, and now the newly created Center for Finance, Innovation and Technology ( CFIT).Leeds has played a prominent role throughout this national development and continues to thrive due to the strength of its finance, technology and hi-tech sectors, which have always been strongly supported by the public sector and the region’s many universities.”

Charlotte Crosswell OBE, Chair, Center for Finance, Innovation and Technology (CFIT), adds:

“The growth of the FinTech sector in Leeds is very impressive and I look forward to working with the financial services, FinTech and technology sectors in the region and across the UK to drive international FinTech growth, attract talent into the FinTech sector and ensure better outcomes for consumers and small and medium-sized businesses. It is vital that we continue to strengthen the links between industry, academia, government and regulators to support this exciting sector, and ensure its impact is felt up and down the country.”

A launch event for the new report took place at Leeds Building Society’s head office on the morning of 14^thFebruary.