Almost all UK fintechs are helping boost the country’s economic growth

Nearly all fintechs in the UK are contributing to the UK’s economic productivity and growth, a new report from Innovate Finance and Accenture has found.

The new study to measure the quantifiable impact of fintech analyses more than 500 UK fintech companies and a number of traditional finance institutions against the UN’s sustainable development goals.

The goals span five key areas: people, planet, place, productivity and peace.

It found that almost all of the companies (98 per cent) contribute to the UK’s economic productivity and growth, and a quarter have a significant impact on reducing inequality by increasing access to financial services.

“It is thanks to the innovation intrinsic to the sector, and to our phenomenal fintech founders and experts, that we can now address some of our greatest societal challenges with more confidence,” Innovate Finance CEO Janine Hirt said.

The report found that the average fintech grew by 20 per cent last year, and over a third (36 per cent) are now delivering products and services addressing the goals of peace, justice and accountability through products like data security and compliance platforms. 

“We must all — industry, government, and regulators —  work together to support our world-leading UK fintech community in driving even greater positive impact and unlock fintech’s next era of productivity and growth,” Hirt added.

More work is needed on working towards the goals of ‘planet’ and ‘peace’, with just nine per cent of fintechs making a significant positive contribution towards climate change.

And, despite an overall positive impact on peace, 42 per cent of companies were shown to have a small negative impact.

The report showed that while the UK fintech sector is having a positive impact, cross-industry collaboration is necessary to unlock its full potential for further innovation.

“There’s no doubt that the UK fintech sector has stepped up to help society navigate unprecedented levels of change in recent years, whether it’s facilitating easier payments, improving the transparency of sustainable investing, or boosting financial inclusion,” Accenture London fintech innovation lab director Graham Cressey said.

“However, barriers to fairer representation in the industry still exist which are preventing it from reaching its full potential. 

“Through cross-industry collaboration and a solid understanding of technology, data and how to measure what matters, UK fintech can continue to lead the way and bring even more positive change in partnership with the broader financial services industry.”

This article was updated to remove inaccurate data from The Fintech Impact Report.