Major investment and growth punctuated London’s fintech scene in 2015, while this year the sector is expected to see increased M&A activity.
Financial technology disruptors are here to stay. And though the banking industry has been on the frontline of change, wealth managers and trading businesses will begin to feel the shake-up more, said Roger Gifford, former Lord Mayor of London and member of the Board of Multrees Investor Services, a fund administrator.
London has some 44k people employed in the sector, four times more than Silicon Valley and in-line with New York, while banks employ more technologists than the technology sector. Overall, companies based in the capital raised $1.6 billion in the first nine months of 2015, with high-profile multi-million pound deals for Funding Circle, WorldRemit and TransferWise.
The areas of real opportunity are around the market drivers: cost, control, capital and compliance
WorldRemit raised $100 million in 2015 led by Technology Crossover Ventures. A spokesman for the company said that fundraising is ‘very much on the agenda again for this year’ but declined to provide more details.
While the headlines have focused on disruptive B2C Fintech, enterprise Fintech will start coming into its own, said Mark Whitcroft, Partner at Illuminate Financial, a London-based venture capital firm.
By ‘enterprise Fintech’, he is referring to technology stacks for banks and professional investors, exchanges and other major capital market players, for example. “The areas of real opportunity are around the market drivers: cost, control, capital and compliance,” he said.
Some of the trends to watch, he added, are: the growth of banks pooling towards collective technology solutions, technologist migration from traditional organizations to younger companies, and which of the large pool of smaller companies manage to make the move from Angel funding to more institutionally driven later stage funding rounds.
In a recent report, Magister Advisors predicted that Payments and Blockchain will be the most active segments. “Payments has gone from ‘boring’ to ‘disruptive’ in a very few years, and we see a range of larger players from PSPs (payment services providers) to alternative payments giants continuing to broaden their offerings as they seek to capture margin and customers,” wrote Victor Basta, Managing Partner at Magister Advisors.
Multrees’ Gifford added that a period of consolidation is at hand as “hard-headed investors take a longer look at what they hold and where proven value lies”. The sector is also receiving more interest from overseas, with potential greater investment from the US, and possibly Japan, on the horizon.
In terms of corporate activity, higher levels of M&A are more than likely this year compared with 2015, as foreign companies are now finding the UK attractive, as property investors have done previously.
Ernst & Young reported a 90% increase in UK M&A value year on year by value, and the number of deals up from 630 to 680. The fundamentals for 2016 appear robust, assisted by cheap debt and increasingly attractive sectors such as financial technology and investment and wealth management, as well as infrastructure and manufacturing.
Looking out of London, Illuminate’s Whitcroft also noted Fintech developments in the world’s financial centres - New York, Singapore and Hong Kong - are a space to watch.
Financial technology disruptors are here to stay. And though the banking industry has been on the frontline of change, wealth managers and trading businesses will begin to feel the shake-up more, said Roger Gifford, former Lord Mayor of London and member of the Board of Multrees Investor Services, a fund administrator.
London has some 44k people employed in the sector, four times more than Silicon Valley and in-line with New York, while banks employ more technologists than the technology sector. Overall, companies based in the capital raised $1.6 billion in the first nine months of 2015, with high-profile multi-million pound deals for Funding Circle, WorldRemit and TransferWise.
The areas of real opportunity are around the market drivers: cost, control, capital and compliance
WorldRemit raised $100 million in 2015 led by Technology Crossover Ventures. A spokesman for the company said that fundraising is ‘very much on the agenda again for this year’ but declined to provide more details.
While the headlines have focused on disruptive B2C Fintech, enterprise Fintech will start coming into its own, said Mark Whitcroft, Partner at Illuminate Financial, a London-based venture capital firm.
By ‘enterprise Fintech’, he is referring to technology stacks for banks and professional investors, exchanges and other major capital market players, for example. “The areas of real opportunity are around the market drivers: cost, control, capital and compliance,” he said.
Some of the trends to watch, he added, are: the growth of banks pooling towards collective technology solutions, technologist migration from traditional organizations to younger companies, and which of the large pool of smaller companies manage to make the move from Angel funding to more institutionally driven later stage funding rounds.
In a recent report, Magister Advisors predicted that Payments and Blockchain will be the most active segments. “Payments has gone from ‘boring’ to ‘disruptive’ in a very few years, and we see a range of larger players from PSPs (payment services providers) to alternative payments giants continuing to broaden their offerings as they seek to capture margin and customers,” wrote Victor Basta, Managing Partner at Magister Advisors.
Multrees’ Gifford added that a period of consolidation is at hand as “hard-headed investors take a longer look at what they hold and where proven value lies”. The sector is also receiving more interest from overseas, with potential greater investment from the US, and possibly Japan, on the horizon.
In terms of corporate activity, higher levels of M&A are more than likely this year compared with 2015, as foreign companies are now finding the UK attractive, as property investors have done previously.
Ernst & Young reported a 90% increase in UK M&A value year on year by value, and the number of deals up from 630 to 680. The fundamentals for 2016 appear robust, assisted by cheap debt and increasingly attractive sectors such as financial technology and investment and wealth management, as well as infrastructure and manufacturing.
Looking out of London, Illuminate’s Whitcroft also noted Fintech developments in the world’s financial centres - New York, Singapore and Hong Kong - are a space to watch.
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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