Peerless growth: The government's recognition of the industry's potential has boosted growth

Businesses in the Financial Technology (FinTech) industry integrate finance and technology in ways that provide a variety of new services to businesses and consumers. Many of the services offered by FinTech companies had previously been delivered by traditional financial institutions such as banks. The UK FinTech industry is highly fragmented and expanding quickly. Areas such as peer-to-peer lending, money transfer, and digital banks have performed especially strongly over the past five years.The industry heavily relies on third-party financing. Improving economic conditions over the past five years have supported funding from both private and public sources...read more.

Industry Statistics & Market Size
Revenue
£8.4bn
Annual Growth 14-19
8.1%
Forecast Growth 19-24
Profit
Employment
62,651
Businesses
1,952
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Rising investment and strong demand is expected to support further industry growth
  • Ernst & Young estimates that the United Kingdom has the second largest pool of FinTech talent in world
  • The comparative maturity of the UK FinTech industry is expected to ensure a large pool of workers
  • Industry Report - Industry Key Buyers Chapter

    IBISWorld expects the four largest FinTech companies in the United Kingdom to have a combined market share of less than 5% in 2018-19, which indicates a low level of concentration in the industry. However, concentration has increased over past five years, as established companies have successfully scaled their operations to serve a wider consumer base and generate greater revenue. However, the high level of fragmentation and wide variety of products and services offered by the industry has resulted in no company holding a significant share of the market...purchase to read more.

    Additional Insights for the Financial Technology Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Financial Technology Industry are

  • Access to highly skilled workforce
  • Ready access to investment funding
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Business lending in the Financial Technology industry impact industry performance..

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    What's in this report

    What is the Financial Technology Industry?

    The Financial Technology industry offers services that integrate finance with technology in order to provide new or improved services to businesses and consumers. Many of the services offered by the industry had previously been offered by traditional financial institutions such as banks.

    Industry Products
  • Payments and digital banking
  • Investment platforms and management
  • Credit and lending
  • RegTech
  • Distributed ledger technology
  • Industry Activities
  • Operating peer-to-peer lending platforms
  • Digital banking
  • Payment services
  • Operating investment platforms
  • Investment management services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business confidence index
  • Business lending
  • Household savings ratio
  • IT and telecommunications adoption
  • Retail sales index

  • Current Performance
  • Regulation and assistance
  • Skilled staff
  • FinTech ecosystem
  • External financing
  • Costs and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Potential problems
  • Sustained demand
  • Traditional threats
  • Profit performance
  • Table: Financial Technology Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Financial Technology Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • General Insurance
  • Pension Funding
  • Consumers

  • Key Selling Industries
  • Employment Placement Agencies
  • Legal Activities
  • Management Consultants
  • Software Development

  • Products & Services
  • Other
  • Payments and digital banking
  • Investment platforms and management
  • Credit and lending
  • RegTech
  • Distributed ledger technology
  • Chart: Financial Technology Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Small and medium-size enterprises
  • Financial institutions
  • Consumers
  • Corporate non-financial institutions
  • Other
  • Chart: Major Market Segmentation for the Financial Technology Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesMarketingRent, utilities, depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Financial Technology

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Financial Technology Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Financial Technology Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Financial Technology Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Digital Bank
  • A bank that does not have a physical presence through a network of branches.
  • Peer-To-Peer Lending
  • Sharing resources between individuals or entities connected through a platform, rather than using a centralised institution such as a bank.
  • Regtech
  • Products and services that utilise innovative technology to address regulatory challenges
  • Software As A Service
  • A pricing model where buyers pay for the service that a piece of software provides, rather than the underlying software itself.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Financial Technology market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Financial Technology:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Financial Technology market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Financial Technology, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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