UK fintech £32bn revenue opportunity, says CBI boss
The Confederation of British Industry (CBI) is launching a campaign to get more businesses to embrace the £32bn ($40.8bn) revenue opportunity fintech presents.
Unveiling the "Winning with Fintech" campaign on Monday evening, CBI president Lord Bilimoria will call for business and government backing to promote the UK’s fintech sector as a key opportunity, with a potential £32bn in additional revenues on offer by 2030.
Among the campaign’s aims will be to help non-financial firms get to grips with fintech as a means of embracing innovation, improving efficiency and competitiveness. The trade body said that fintech could help businesses “of all sizes” boost productivity amid headwinds such as supply shortages, rising inflation and energy prices.
Read more: UK tech ecosystem reaches $1tn valuation
Bilimoria is expected to say: "Businesses need all the support they can get at present. Slow growth post-pandemic and supply chain struggles have been exacerbated by the terrible conflict in Ukraine.
"What firms need are fair winds and following seas, with fintech featuring a flotilla of benefits, making global trade smoother, payments easier and sustainability better.
"The UK’s world leading fintech sector is ideally placed to go from strength-to-strength in supporting businesses to manage risks and reduce costs in an uncertain world. The CBI will champion fintech by supporting businesses of all sizes across and sectors to seek solutions that will work for them."
Statistics from Innovate Finance show around £9bn was invested in UK fintech businesses in 2021, a 217% increase from 2020.
The UK's technology ecosystem has surpassed $1tn in valuation, becoming the third in the world to reach this landmark.
The UK is now home to 13 decacorns, of which 10 have gone on to IPO, and are the most highly valued tech companies in the country. They include Markit, WorldPay, Checkout.com, Revolut, ARM, FNZ, Wise (WISE.L), Rapyd, Ocado (OCDO.L), Admiral, eToro and Deliveroo (ROO.L).
Read more: London tech IPOs raise record £6.6bn in 2021
Ed Thurman, CBI strategic adviser on fintech, said: “All too often many businesses think innovation is something other firms do. ‘Winning with fintech’ aims to get more firms engaged with financial technologies to save costs, improve efficiency and go for growth. In challenging times, partnering to achieve these aims will be crucial for businesses of all sizes, and is a key area of focus for this work.”
The campaign will explore how firms can work more effectively with fintech to unlock growth and efficiency opportunities — in areas including opening up new markets, improving payment flows and transitioning to net zero.