What is FinTech?
The Fintech sector can be seen as a very broad field, encompassing the technological innovations which impact the delivery of financial services traditionally offered by banks, insurers or asset managers.
FinTech companies introduce digital innovations to various sub-sectors such as Payments, Foreign exchange, Financial Software, Insurance, Asset Management and many more.
A Growing Sector
The FinTech space is rapidly growing with investments soaring by 136% in the UK in 2014. UK and Ireland have now become the fastest growing region for FinTech investment in the world!
This growth is fuelled by global trends: established financials institutions are under intense regulatory pressures which slow down their progress and capture a considerable amount of resources. Those financial institutions need innovative solutions to defend their market position and adapt to new realities such as worldwide mobile adoption or changing user behaviour and expectations.
As a world leading centre for financial services and with a vibrant startup hub, London is particularly well placed to benefit from this on-going growth.
From an investor’s point of view, this shows not only a big market opportunity but also a clear route to exit either via trade sales to established financial firms or public listings of fast growth new players.
A Favourable Environment in the UK
Thanks to supportive regulations towards innovators and a very attractive investment environment, more and more FinTech startups are created in or have relocated to the UK to grab this market opportunity.
The FinTech 2016 SEIS Fund has been developed to allow private investors to get exposure to this growing sector and directly invest in some of the most promising FinTech startups – all the while benefiting from the generous tax breaks available under the Seed Enterprise Investment Scheme.