FinTech sector in North East to create over 2,000 jobs in three years

The new strategy follows an independent national strategic review which identified Durham and Newcastle as in the top ten FinTech clusters in the UK.

Developed by Whitecap Consulting with the support of key stakeholder organisations in the public sector, private sector, and higher education, it outlines a high-level plan for the region to create more and better jobs, develop a collaborative, sustainable, growth-focused FinTech hub, and foster regional, national, and international connectivity.

In addition to the new jobs, the Gross Value Added (GVA) created by FinTech is forecast to increase 11 percent per year, to reach £431m in 2025, and the number of FinTech firms is expected to nearly double to 81 (currently 45).

The report finds 76 percent of the region’s FinTech firms are currently based in Newcastle, Gateshead, or Sunderland, with 11 percent in Durham, and 9 percent in the Tees Valley region.

The Review of UK FinTech, published in February 2021, showed the fast-growing sector generates £11bn of GVA for the UK each year.

FinTech, the use of technology to enhance the delivery of financial services, is a growth industry in the wider North East region that has been driven by substantial levels of investment and employment. This investment has seen a 58 percent increase in the number of firms operating in the FinTech sector over the last three years, including an 81 percent increase in the number of FinTech start-ups, and scaleups.

The work has been supported by key regional stakeholders including Atom bank, Invest North East England, North East ROCU (North East Regional Organised Crime Unit), among others.

Sir Ron Kalifa, author of the Kalifa Review, said: “I am delighted to see the publication of a FinTech growth strategy for the North East. In developing this three-year strategy, the group of regional stakeholders that have worked with the Whitecap team have collectively delivered against a key objective that was laid out in my Review last year. I hope the new strategy will generate opportunities, secure investment and can help create jobs that will help the FinTech sector and economic prosperity of the region and the UK.”

Richard Coates, Managing Director at Whitecap Consulting, said: “We are delighted to publish this strategy to support the future growth of FinTech in the North East. The key to successful implementation will be how the region takes ownership of the actions and works collaboratively to deliver them. Our analysis shows that the growth of FinTech in the North East over the last 3 years has primarily been driven by tech sector expansion and inward investment success in attracting new FinTech and tech firms to the region.”

The report can be accessed at: www.whitecapconsulting.co.uk/press-release/fintech-sector-in-north-east-to-create-2000-jobs-in-3-years/