FRP - A fork in the road - the future of UK fintech

A fork in the road: The future of UK fintech

A fork in the road: The future of UK fintech


North East

Percentage of firms concerned about their ability to trade through the next six months

Michelle Elliot, Restructuring Advisory Partner at FRP said: “There’s no denying that fintech firms in Scotland are clearly finding some aspects of life challenging. While many have struggled to grow in the last year and, for many, it’s proving harder to source funding, we can take heart from the resilience that firms are showing in the face of these conditions. It’s still concerning that two in five worry about their ability to trade through the next six months but that’s the lowest proportion in the UK. That spirit of enterprise and ambition gives me confidence for the future.”

Shaun Hudson, Restructuring Advisory Senior Manager at FRP said: “To hear that over half of the region’s fintech firms worry they might not last a year is clearly a concern. While other regions appear more bullish, the North East has a healthy fintech community, led by people with real drive and creativity, and I remain confident in the sector’s potential. We’re developing a specialism in payments infrastructure, and the region’s academic strength means we have a strong pipeline of the kind of talent that will support the sector’s future success.”

40% Scotland

56% North East



Daniel Brecker Corporate Finance Director at FRP said: “From a fintech perspective, Leeds and Manchester are hugely exciting places to be at the moment. They represent an accessible alternative to London, with lower start-up costs and an excellent pipeline of talent. Of course, the North isn’t immune to the financial challenges that all UK businesses are currently living through, and we can see that the fear of failure is elevated across the country. Still, despite the challenging conditions, firms in the North are more bullish when it comes to valuations, revenue growth and access to funding, so the future looks bright.”

Gemma Jones, Financial Advisory Partner at FRP said: “The Midlands has ambitions to establish itself as a significant fintech hub and the region has huge potential. Despite being the region with the most firms perceived to be ‘at risk’, it can take comfort from the fact that its fundamentals are fairly strong, including revenue growth, valuations and access to funding. With these strengths, as well as our excellent infrastructure and skills base, the region is well positioned to weather the current challenges affecting the UK.”

42% North

46% London

58% Midlands


Dan Conway, Restructuring Advisory Partner at FRP said: “London is an established global fintech centre and as such it is experiencing the same headwinds as the wider sector. It’s ultimately a concern that only a quarter of firms have seen revenue growth accelerate in the last year, but we can take confidence from the fact that the funding environment remains relatively strong – particularly as it looks to lead the charge and support other fintech hubs across the regions.”



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