London has long been heralded as the financial technology capital of the world. Even though “Brexit” has been hanging over the city like a dark, thunderous cloud, London still retains its title as the number one
And it will take some time to knock it off the podium. With the world’s largest financial services sector, an exploding tech industry, prime global positioning and a diverse talent pool, London is the epitome of what a
There are many other cities across the globe that are biting at London’s heels, trying to close the gap. However, the UK capital remains top of its game, thanks to a perfect mix of four elements. EY lists these elements as talent, capital,
London has the ability to attract top-quality talent from around the world through higher than average salaries, good quality of life, easy access to basic amenities (healthcare, social and cultural attractions, public transport, etc.) and the promise of career progression, especially within the finance sector.
This ability to attract talented employees makes London a truly global and diverse city. According to the City of London Economic Research, 37% of London’s workforce is non-native, meaning over a third of workers were born outside of the UK.
Diversity is important. It brings with it out-of-the-box thinking which is crucial for innovative startups to break through technological borders.
As of 2015, 44,000 individuals worked within the
Influential business membership
During 2016, £936m was invested in UK
These figures are important because it shows London’s commitment to
Three of London’s top
And 2017 got off to a good start for London
London is also a leading, global financial
This strong financial presence is a key factor in London’s dominance as a
In order for established financial services institutions to stay competitive, they will need to invest in the development of innovative financial products (either in-house or through collaboration with external
The UK has very
The FCA started Project Innovate in 2014 and some of its core focusses include a regulatory sandbox (providing a testing ground for
They further encourage
The government also implemented tax incentives, which is crucial for the survival of early stage
This includes the Seed Enterprise Investment Scheme (SEIS) which encourages individuals to invest in small businesses by allowing them to offset part of their investment against their UK income tax liability.
In addition to this, they have implemented Entrepreneur’s Relief (ER), which is available to reduce the effective rate of Capital Gains tax to 10% in certain circumstances and Research and Development relief which reduces the corporate tax liability for qualifying companies.
These programs and incentives have a direct, positive impact on
The demand for innovative
Many established financial institutions still rely heavily on outdated, legacy systems. With the world’s highest concentration of banks, asset managers, insurance and trading
The demand is further highlighted by the increase in job vacancies. According to Joblift, there’s been an average monthly growth of 5% in the number of
It also shows that the largest
According to the EY FinTech Adoption Index 2017, UK’s
A lot has been said about Brexit and how the UK’s decision to leave the EU will be the deathblow to London’s