Fintech

The Midlands is the largest UK region for business, professional and financial services outside of London and for tech companies servicing their requirements, which has seen rapid expansion in recent years.

It is home to the regional offices of PwC, KPMG, Deloitte, and EY together with headquarters and major European offices across:

  • Banking – including Deutsche Bank, Santander, Capital One, Barclays, Capita, Al-Rayan, The State Bank of India
  • Insurance – Wesleyan, Beazley, Zurich, AmTrust
  • Law – The largest branch of the law society outside London with over 3500 major international and UK legal companies
  • Financial institutions – including the Financial Ombudsman, data analytics giants Experian & Thomson-Reuters, payment technology leader Global Payments.

The sector’s growth and high profile will further be complimented by HSBC moving their ring-fenced banking headquarters from Canary Wharf to Birmingham in early 2018.

Financial services in the Midlands region is expected to grow by up to 25% by 2025, making it the UK’s fastest-growing financial services centre (Research – TheCityUK and PwC’s Strategy&) fuelled undoubtedly by the region having the fastest growing economy in the UK in 2017 (GVA growth of 6.8%).

The success of the Midlands professional sectors, with over 100,000 companies, has undoubtedly been fuelled by the highly skilled talent base (over 650,000 financial, legal, accounting, insurance and data analytics employees) and the strength of the region’s academia – over 20 universities, providing nearly 115,000 graduates annually, with 120 Centres of Excellence directly relevant to professional sectors and technology.

Grade A office space within the region is available from as little as £200 per sq/mt, and salary costs are on average 60% lower than comparable roles in London. A Mercer study in 2017 declared the region to have the highest quality of life in the country outside London1, and recent research (CV Library) identified that the Midlands has one of the highest average monthly disposable incomes for employees in the UK (around £1,000)2.

With one of the most diverse populations in Europe, and with London’s extensive financial markets less than one hour’s journey away, the Midlands has become a major international hub for business, professional and financial services and a dynamic location for fintech companies working with them.

Innovation, disruption and transformation have all led to a rise in key fintech sectors across the Midlands such as risk management, cyber, data analytics, reg-tech, investment management, challenger banks, payment and insurance technologies. This has been exemplified by the growth of established businesses and new occupiers from foreign and UK markets including major international companies such as Deutsche Bank (anti-fraud, data analytics); Beazley Insurance (innovation and change implementation technology); Charter Savings Bank, Handelsbanken (challenger banks); TDX (risk management, data analytics); HSBC, Santander, and ASOS (payment technologies).

Market opportunities generated by these major institutions, and the proximity of London’s financial markets, has boosted the growth of SMEs choosing the Midlands as their core location – Regtech world leader Lombard Risk; Australian owned IRESS, wealth management and mortgage tech; HD Decisions, tech solutions for the credit market, together with a large number of start-ups and scale-ups located in accelerators and collaborative work spaces across the region.

Highly skilled technical, financial and entrepreneurial talent within the region is abundant (HSBC recently spoke at WMGC launch event and sadi they had no trouble getting staff – don’t know if Roy can get that quote. According to Telefonica’s report ‘The Rise of the incubators’ the region has the greatest environment for incubators, accelerators, and support groups for high-potential tech companies.

University strengths

The Midlands is home to over 20 universities and 54,800 Creative and Digital students including 15,000 studying Computer Science, this ensures that the region has the best talent pool for any growing business. Our universities also provide a wealth of knowledge and expertise for tech companies to collaborate and develop new products and services.

The University of Birmingham and Warwick University, both of whom are recognised within the world’s top 1% of business schools.

Centres of Excellence

Renowned Centres of Excellence, for PhD students and research, are abundant throughout the Midlands universities with over 120 internationally recognised Centres of Excellence specifically targeting business, finance, tech, fintech and supporting disciplines.

Incubators & Accelerators

The Midlands region offers a wide range of business incubation space for companies looking to invest in the area, from Venture Capital backed co-working spaces to dedicated tech campuses there is not only quality space but a dedicated tech ecosystem.

The Midlands region is also home to many tech and business incubators which offer the opportunity to work with some of the most important companies in the sector, such as Capital One’s Growth Labs, or the UK’s largest dedicated tech campus, Innovation Birmingham, which continue to disrupt the financial sector and deliver new products and services.

Incubator and accelerator costs range from free desk space in incubators up to £100 per sq/mt in accelerators and co-working spaces.

The availability and quality of support for new companies were underlined in January 2018 when ‘Start-Up Britain’ declared that the region had the highest number of start-ups in the UK outside of London.

  • Birmingham & Solihull

    Greater Birmingham’s reputation as an established tech hub is growing. The region is already home to 6,000 pure tech firms employing more than 32,000 highly skilled tech professionals, with tech firms boosting the economy by £2.3 billion every year. Birmingham provides exceptional technological infrastructure at an affordable cost, supported by a highly skilled talent pool and leading national universities –...

    Read more →
  • Worcestershire

    Worcestershire is strengthening its reputation as a key technology location, with the UK’s fastest growing workforce in terms of productivity and higher level skills. Worcestershire’s growing workforce skills is just one of the key factors that are enabling local businesses to innovate. Joseph Rowntree Foundation’s latest 2017 report shows that Worcestershire has once again achieved the strongest growth nationally in...

    Read more →
  • Stoke-on-Trent & Staffordshire

    Stoke-on-Trent and Staffordshire is the home of Britain’s billion pound start-ups. A place where innovation, creativity and enterprise drive business growth and attracts international brands. That same entrepreneurial spirit that created world-beaters like Spode, Wedgwood and Bass is alive and well here today. Some of Britain’s greatest success stories, like JCB and bet365, have all grown from garage start-ups into...

    Read more →
  • Nottingham

    Nottingham has a fast-growing tech sector that employs over 19,700 people across areas including Fintech, Gaming, Health-tech and Retail-tech and contributes £835m into the local economy. Access to a large talent pool, lower operational costs, and a close-knit tech community ensures there is an excellent business ecosystem for start-ups through to large-scale businesses. Nottingham’s Creative Quarter is home to a...

    Read more →
  • Leicester & Leicestershire

    Leicester and Leicestershire boast a young, diverse, multicultural City; thriving market towns and popular villages set in an attractive landscape; three strong universities; and a central location with good connectivity. Also, there are genuine opportunities for economic growth in the area, including those in sectors such as design, manufacturing, export-based businesses, innovation and technology, research and enterprise. Just one hour from...

    Read more →
  • Derby

    Derby has a rich history as the UK Capital for Innovation and is often at the forefront of groundbreaking technological advances – the Toyota Motor Manufacturing UK plant in Burnaston was the first place in Europe to mass-produce a hybrid vehicle. Derby-based Rolls-Royce has recently announced their plans to collaborate on a hybrid-electric test aircraft that will fly by 2020....

    Read more →
  • Coventry & Warwickshire

    Coventry & Warwickshire has a long tradition of creativity and Innovation: from the skills to craft the earliest surgical needles to the wit and wisdom of William Shakespeare, our celebrated playwright; the modern bicycle can trace its lineage back to the Starley ‘Rover’ safety cycle, a forerunner of the Land Rover brand; the jet age began here with the ingenuity...

    Read more →
  • Black Country

    The Black Country continues to be an attractive location for business to succeed. It is home to world-leading companies and major industry clusters. Benefiting from significant increases in foreign and domestic investment over recent years, the Black Country is a success story that offers lucrative growth potential. Located in the West Midlands, the Black Country lies at the heart of the UK’s...

    Read more →