Fintechs are choosing to focus on smarter, faster machines with firms looking increasingly at Artificial Intelligence (AI).
Additionally, the report contains a positive outlook for the UK’s FinTech companies following Brexit. Nine out of the top 20 UK FinTech deals were completed post-EU referendum, amounting in a solid $368 million investment total, according to a co-written report by PwC and startup accelerator Startupbootcamp.
This consistent interest in UK FinTech startups could be explained by a further detail from the report, which shows that nearly one in seven (16%) of applications to the incubator programme in 2016 were targeting new prototypes. Many of these new prototypes were based on AI and Machine Learning.
The report is called ‘Start-up view: a year in FinTech’, and it analysed data from the Startupbootcamp’s FinTech accelerator programme. This data was also viewed in light of the volume of deals in the UK FinTech market in 2016.
Steve Davies, EMEA FinTech leader at PwC, said: “While questions remain on how big players can measure their success in FinTech, the reality is investment in innovation is now necessary for financial services companies to keep pace with competitors both within and outside their own industry.”
“The FinTech industry is not immune to broader political and economic uncertainty but the UK remains very well placed to lead the way. As the UK’s position in Europe post Brexit becomes clearer, startups from across the world will continue to travel here to work with international investors, partner with leading financial firms and develop under a forward thinking regulator.”
This statement stands out as it not commenting on the mere survival of the UK’s place in the FinTech rankings, but it shows that the UK is still in a strong position to be in poll position.
Francisco Lorca, managing director of Startupbootcamp FinTech London, said: “Despite political, economic and financial uncertainty causing people to believe FinTech might be derailed, at Startupbootcamp we have yet to see any real impact. This year, we have seen the sector’s entrepreneurs, including the Startupbootcamp FinTech 2016 cohort, consistently proving that they have genuinely transformative ideas to offer – and that these ideas are commercially viable.”
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