While the annual fintech conference in London gets underway this week a new report from law firm Simmons & Simmons reveals that three-quarters of international banks and asset managers are looking to boost their collaboration with fintech companies.
The report also reveals 31 per cent of those polled were seeking an acquisition within the next 12 to 18 months and those companies believed that finding a technology partner was vital to remain digitally competitive.
The firm surveyed 200 senior-level respondents across five financial centres.
Whereas fintech used to be seen as a threat to incumbents, the focus has now shifted to collaboration with cyber security (71 per cent of respondents) and regulatory risks (45 per cent) being the only perceived risks deterring firms putting an offer on the table.
As the fintech industry matures and evolves the UK Government is going all out in its efforts to attract more international investment into the sector. It is working with fintech trade body Innovate Finance to bring the industry, government and regulators together at the London conference to focus on the investment, access to skills and business support required to grow this sector.
Chancellor of the Exchequer, Philip Hammond said: “The fintech sector is one of our fastest growing sectors, adding more than £6.6 billion to the UK’s economy and attracting more than £500 million of investment. Fintech Week 2017 is an opportunity for Britain to build on these successes and attract further investment in our world-leading sector, ensuring we remain at the cutting edge of financial innovation.”
Lawrence Wintermeyer, chief executive of Innovate Finance commented: “The UK has developed a blueprint for the best fintech ecosystem in the world through progressive government policy, an innovative regulator, and a global pool of fintech talent that is the envy of the world.”
Hammond is hoping that the conference will address a “gap” in attracting international investment and keep London at the cutting edge of financial innovation.