Fintech in the United Kingdom - statistics & facts
The United Kingdom stands at the forefront of Europe’s fintech landscape, boasting the largest fintech industry on the continent. Not only does the UK fintech sector showcase the largest revenue, transaction value, assets under management, and overall market size, but it also serves as the headquarters for some of the most valuable fintech unicorns in Europe. In fact, as of October 2023, the three largest fintech unicorns in Europe were all based in the UK.
In 2023, the revenue of the fintech industry was estimated at over 3.3 billion U.S. dollars, most of it generated in the digital assets segment of the industry, which includes cryptocurrencies, NFTs, and decentralized finance, or DeFi. Another notable segment of the UK fintech industry is online banking, which is used by the vast majority of the population.
With projections indicating a steady rise in the number of fintech users, the UK's position as a leader in the European fintech industry is set to strengthen further, driving innovation and reshaping the financial services landscape.
In 2023, the revenue of the fintech industry was estimated at over 3.3 billion U.S. dollars, most of it generated in the digital assets segment of the industry, which includes cryptocurrencies, NFTs, and decentralized finance, or DeFi. Another notable segment of the UK fintech industry is online banking, which is used by the vast majority of the population.
Why are digital banks gaining popularity?
Digital banks, otherwise known as disruptor banks or neobanks, are mobile-first, app-based banks that operate without physical locations. Due to the significantly lower overhead costs associated with running a digital business, online-only banks can often offer much lower fees, cashback, and rewards to customers compared to traditional banks. The UK is home to some of the largest digital banks in Europe, including Revolut, Wise, OakNorth Bank, Monzo, Starling Bank, and Monese. With around 35 million customers worldwide, Revolut has the largest customer base, but OakNorth Bank, Monzo, and Starling Bank also rank among the leading online banks by market value.Open banking
Digital banks, inherently technology-driven and often built with modern infrastructure, are well-positioned to leverage open banking capabilities and innovate. Open banking facilitates the secure sharing of customer financial data among banks, non-bank financial institutions, and third-party service providers. The concept of open banking originated in the UK, positioning the country as a front-runner in the open banking landscape. The UK's prominence is evidenced by the value of open banking transactions, which accounted for over 23 percent of the total global value in 2023. The number of open banking users has multiplied in recent years, reaching eight million at the end of 2023. The UK’s open banking success is also evident from the escalating number of API calls and payments facilitated through this framework. The market experienced a upward trend in API calls in 2022 and 2023, with over one billion successful calls recorded every month.With projections indicating a steady rise in the number of fintech users, the UK's position as a leader in the European fintech industry is set to strengthen further, driving innovation and reshaping the financial services landscape.
