The fintech industry in the United Kingdom is undergoing a transformation, with the West Midlands region gaining recognition as one of the country’s three primary fintech hubs. In a region historically known for its industrial sector, Birmingham and its fintech businesses have become key players in driving economic growth. This sector has become a vital source of employment, providing over 11,000 jobs in the West Midlands. It is anticipated that the economic output for the sector in the region is set to reach £1 billion.
The UK’s exclusive tech supercluster which is headquartered in the West Midlands highlights the significant contribution of fintech to the local economy and showcases the region’s potential to achieve further substantial growth.
Research and education in financial technology
A critical factor in the West Midlands’ fintech success story is its network of higher education institutions. These institutions are instrumental in nurturing talent, developing research and collaborating with businesses to propel the fintech ecosystem forward. One such academic partner is the Gillmore Centre for Financial Technology at Warwick Business School, renowned for its pioneering research and educational programs in the field of financial technology. The Gillmore Centre is committed to engaging with regional businesses, leveraging global research expertise to further develop fintech in Birmingham and the wider West Midlands.
Matt Hanmer, Honorary Research Fellow at the Gillmore Centre, said that the significance of this academic-industry partnership. He described how “important the burgeoning fintech sector is to the region. We will support this growth with our research and by developing the next generation of workers through our courses.”
The collaboration between higher education institutions and the fintech sector is a cornerstone for successful tech clusters worldwide. The Gillmore Centre is actively involved in various projects aimed at advancing the fintech landscape, including the creation of GillmoreAI and a Crypto Index, which are poised to benefit the region’s fintech enterprises.
Next generation services
The recognition of the West Midlands’ fintech potential was recently mentioned during a reception hosted by the City of London Corporation, focusing on next-generation services in Birmingham. Additionally, a Mayoral Roundtable, hosted by West Midlands Mayor Andy Street, (in photo above), is set to discuss the future steps in realizing the potential of fintech in West Midlands. These initiatives aim to further solidify the region’s position as a expanding fintech powerhouse in the UK.
West Midlands is now positioned as a thriving hub for the fintech sector with the potential to attract inward investment on a global scale and over next-generation services and attract strategic investments.