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Banking giants talk financial resurgence under FinTech influence

 

  • Financial giants and FinTech start-ups move towards collaboration to benefit customers
  • Manchester’s FinTech sector to expand and is already largest financial services hub outside London

The evolution of the digital landscape, the growth of the UK FinTech industry and the ability to attract talent into the sector post-Brexit – a few of the key issues being addressed at a forthcoming event which has some of the UK’s most influential financial thought leaders on the guest list.

Taking place on 14th September at Canary Wharf, one of Europe’s financial service centre hubs, FinTech Revolution: Embracing Change During a post-Brexit Era of Business Transformation brings together banking giants Barclays and RBS, along with FinTech start-ups and SMEs to discuss some of the challenges companies might face following the EU Referendum. FinTech Revolution will also address current trends and how FinTech is shaping the financial industry, creating more market opportunities for institutions.

With a reputation as the most disruptive development to financial services, FinTech is introducing products to harness greater efficiency and innovation by enabling customers to feel more empowered. Additionally, FinTech increases the ways in which financial services providers interact with their clients to revolutionise the customer experience.

According to Innovate Finance, the industry trade body for FinTech, the UK attracted the second highest number of FinTech funding in 2015, behind the US and was third in terms of volume invested, behind the US and China. It was also noted the UK FinTech industry grew by 35 per cent from the previous year.

Jeffrey Tijssen, Managing Principal and Head of FinTech & Digital Partnerships, Capco Digital, said: “The UK is the global capital of FinTech and over the last few years we’ve seen it grow from its disruptive roots into a £6.6bn tour de force, employing around 61,000 people.

“Digital technology’s prominence is radically influencing today’s consumer habits and how we operate professionally. It dominates how we arrange our finances, communicate, shop and consume information therefore, our FinTech industry has no signs of losing pace despite the uncertainties that the EU Referendum result brings. Digital is at the forefront and the latest trends such as big data, crowd funding, the Cloud and mobile payments are helping FinTech thrive. New rules and directives such as PSD2, will enhance the customer experience, improve security and boost competition.”

FinTech in the UK has the potential to move into the mainstream as established institutions like Barclays through the Rise concept, collaborate with new digital companies to create FinTech clusters.  Rise finds solutions to some of the biggest challenges facing financial services through scaling early prototypes and devising new business models, then translating them into live products and services.

Manchester’s growing FinTech cluster is a strong alternative to London, with high-end facilities designed to support companies at any stage of their life cycle, from start-ups to well established companies with a number of incubator/accelerator spaces and digital hubs around the city.

Tim Newns, chief executive of MIDAS, said: “The city is home to many large global firms such as BNY Mellon, and RBS, as well as new, innovative organisations like VST Enterprises. Many firms such as Lloyds and Barclays also have their UK IT centres here. This convergence of Manchester’s two largest industries, financial services and digital technology, has resulted in a growing cluster of FinTech businesses; from well-established companies supporting the financial services, to smaller firms developing novel solutions and disrupting current business models. We have seen particular growth in FinTech firms specialising in payments.

“Manchester has a proven track record of supporting FinTech investments complemented by a high-calibre of talent. The strength of Manchester’s digital infrastructure means it attracts fast-growth SMEs like AccessPay and Crowdcube to establish and grow their technology footprint. By the end of this year, The Vault, a new hub for innovative companies, SMEs and start-ups will take up residency on the Spinningfields site at XYZ. This combined with spaces such as Rise, Manchester, has led to an emerging FinTech cluster in the region.”

Speakers at FinTech Revolution: Embracing Change During a post-Brexit Era of Business Transformation include Jeffrey Tijssen, Managing Principal and Chair FinTech Working Group, Capco Digital, Alastair Lukies, Chairman, Innovate Finance; Anish Kapoor, CEO, Access Pay; Damien Richardson, Head of Innovation and Strategic Initiatives, RBS; Darren Earnshaw, Head of Lending Technology, Barclays; and Tim Newns, Chief Executive, MIDAS, Manchester’s inward investment agency.

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Notes to Editors

Manchester is being recognised for its FinTech potential, being recognised by industry body Innovate Finance, as a key FinTech centre in the UK outside of London. As the UK’s second largest economy, Manchester is an economic powerhouse employing almost 277,000 people in the financial and professional services sector. Its reputation as a ‘city of innovation’ is truer today than ever with Manchester now firmly established as a major technology hub.

MCR UK – synonymous for emerging FinTech talent

The-UK-Loves-FintechManchester is recognised for its FinTech potential by industry body Innovate Finance. As the UK’s second largest economy, Manchester is an economic powerhouse employing almost 324,000 people in the financial, professional and business services. Its reputation as a ‘city of innovation’ is truer today than ever with Manchester now firmly established as a major technology hub.

Manchester and the wider North has a large number of tech firms providing solutions to the financial services industry and many banks themselves have major technology operations here including The Co-operative Bank, Barclays, HSBC, Bank of America Merrill Lynch and Williams & Glyn. Manchester has a strong and growing pool of tech talent; the city is home to the largest ICT sector outside London with companies such as IBM, HP, Fujitsu, Oracle and Google having a presence here.

The region is home to 70,000 ICT professionals and growth has outstripped anywhere else in the UK (50% over the past decade, five times the national average). The region is the place to go for business.

With the largest travel-to-work catchment area of any regional city and a young and growing population, Manchester provides a constant stream of talent enabling companies to scale up their operations within short timescales. From large financial services companies such as Barclays and The Co-operative Bank through to FinTech firms such as AccessPay, Crowdcube and MarketInvoice, Manchester has a proven track record in helping companies build up a labour force. The region also has one of the largest student populations in Europe, allowing investors to tap into an emerging labour force.

Greater Manchester is calling for the UK to bid to host the World Expo 2025 – and for it to be held in Tameside

Potential host countries have until October 31 to put themselves forward to host the six-month showcase of technology, manufacturing, and culture from across the world and Greater Manchester Combined Authority is putting pressure on the government to throw the UK’s name into the hat.

It says the opportunity for a global shop window to demonstrate that the UK is open for business and committed to international trade following the referendum vote to leave the European Union is too big to miss.

GMCA is also lobbying for Greater Manchester to host the event, having identified Ashton Moss in Tameside as a suitable site of enough size, which it says could become a hub for new economic growth with a legacy of jobs, housing and investment in an ‘Expo City’.

The 110-ha site is less than 10km from Manchester city centre and within 15km of Manchester Airport.

Jake Berry, MP for Rossendale and Darwen, said: “This bid has already been seen by Treasury who recognise its value but were not at the time of the last budget in a position to back it.

“If our new Prime Minister Theresa May is serious about continuing with the Northern Powerhouse it’s big ideas like 2025 Expo that the Government has to give its support to.

“This is a once in a generation opportunity to rebalance our economy and promote the Northern Powerhouse as a global brand.

“The Government saw fit to spend £9bn on bringing the Olympics to London. This seems to be a better investment.”

The World Expo, which takes place every five years and runs for six months, is larger in size, scale and duration than any other global sporting and cultural event, including the Olympics and football World Cup.

GMCA says it would offer UK trade and investment a boost at least comparable to the 2012 London Olympics, attracting up to 28 million visitors as well as exhibitors and would-be investors from around the world.

But the cost of hosting such an event is significant, in excess of £1bn. GMCA says, however, that previous World Expos have at least broken even through gate receipts and significant private sector contributions could be explored.

Sir Richard Leese, GMCA lead member for economic strategy, said: “It is ambitious. But as the London Olympics, and the Manchester Commonwealth Games before them showed, tremendous economic and social benefits can flow from bold and concerted backing for a big idea.”

Representatives of 145 countries attended World Expo 2015 in Milan, which had 54 national pavilions.

Liverpool was the only UK city to have a presence at the previous 2010 World Expo, held in Shanghai. The next event in 2020 will be held in Dubai.

Manchester’s credentials as emerging leaders in FinTech

Fintech headerManchester is the driving force behind some of the world’s greatest discoveries in science, IT and tech. For it was here that the Industrial Revolution was born, where the atom was split, where the first stored program computer created, and the ‘wonder-material’ graphene first isolated.

It’s a unique city that always dares to be different and has a great innovative spirit, making it the ideal location for companies to trial new products and services, and is influential in changing how businesses interac. Manchester is a place where content creation fuses with digital technology, out of which innovation is emerging and being applied across all industry sectors including FinTech.

Manchester’s Financial and Professional Services (FPS) sector* is the largest outside of London and accounts for 20 per cent of the local economy. The city is home to many large global firms such as BNY Mellon and RBS, as well as new, innovative organisations like Worldpay and VST Enterprises. Many firms such as Lloyds and Barclays have their UK IT centres here. The convergence between FPS and digital provides the perfect environment for FinTech which has led to a growing cluster of FinTech businesses here; from well-established companies supporting the financial services, to smaller firms developing novel solutions and disrupting current business models. Manchester’s Financial and Professional Services (FPS) sector* is the largest outside of London and accounts for 20 per cent of the local economy.

Manchester has a proven track record of supporting FinTech investments complemented by a high-calibre of talent. The strength of Manchester’s digital infrastructure means it attracts companies to establish and grow their technology footprint. By the end of this year, The Vault, a new enterprise for innovative companies, SMEs and start-ups will take up residency on the Spinningfields site at XYZ. This combined with spaces such as Rise, Manchester, one of seven global hubs catering for the digital community, has led to an emerging FinTech cluster.

RISE’s concept is to find solutions to some of the biggest challenges facing financial services through scaling early prototypes and devising new business models, then translating them into live products and services. –  Manchester’s growing FinTech cluster is a strong alternative to London, with high-end facilities designed to support companies at any stage of their life cycle from start-ups to well established companies with a number of incubator/ accelerator spaces and digital hubs around the city.

Tim Newns, chief executive of MIDAS, Manchester’s inward investment agency, said: “The XYZ development is a cleverly designed, collaborative environment where smaller FinTech companies can target business leads, pitch ideas to specific audiences and meet potential clients, exposing them to larger incumbents and professional services. In turn, corporations will act in a supportive role to nurture the next wave of digital entrepreneurs”.

FinTech has grown from its disruptive roots into a £6.6bn industry, employing 61,000 people in the UK. **With the University of Manchester being listed as the top higher education establishment in the UK for students with ambitions to work in FinTech, this demonstrates the city’s capability to draw emerging talent into the sector, which leads in payments, platforms, data analytics and cyber security.

Tim Newns, added: “FinTech is growing rapidly due to the revolutionary way consumer demands are changing, how people spend money and the way interactions are made with businesses and financial institutions. Manchester has a strong collection of FinTech companies ranging from large corporations to fast-growth SMEs like Hello Soda and AccessPay.

“Traditionally London was the UK’s FinTech hub but there is now a healthy concentration of businesses within the sector located in Manchester. The work that Innovate Finance are doing in the city also signifies the importance of the region’s financial market. Market Invoice, VST Enterprise, eMoneyUnion are also established here, as are financial aggregators like MoneySupermarket, adding to Manchester’s financial centre of excellence.

Anish Kapoor, CEO, AccessPay, said: “One of the benefits of being surrounded by like-minded businesses are the collaborative opportunities it presents. Since locating our offices to Manchester in 2014, we’ve seen a gradual increase in the number of tech start-ups being established in the city and with a leading university computer science department on our door-step, we have access to a strong talent pool.

“This has helped us to move quickly and address the changing way in which businesses want to process their business payments. The market has moved rapidly away from making payments manually using banking portals, to wanting highly secure, automated and more efficient automated payment processing using a system such as ours. By accessing the strong local talent pool, and FinTech expertise, we have been able to become the leader in this fast growing space.”

Tim Newns concluded: “The UK is the capital of the FinTech world and with Manchester emerging as a major player within this sector, we’re serious about creating synergy between us and the US market, in particular Silicon Valley. Virgin Atlantic is launching direct flights from Manchester to San Francisco next spring and connecting these destinations will provide even greater opportunities for Manchester’s FinTech sector.”

FinTech Revolution: Embracing change during a post-Brexit era of business transformationis taking place on 14th September 2016. It will explore the key issues facing the sector, and provide a chance to hear from industry thought-leaders about current trends, challenges and market opportunities.

FinTech Revolution has been organised by MIDAS in conjunction with Innovate Finance, the UK’s industry body for the FinTech community and Barclays. Confirmed speakers include Jeffrey Tijssen, Managing Principal and Chair FinTech Working Group, Capco Digital, Alastair Lukies, Chairman, Innovate Finance; Anish Kapoor, CEO, AccessPay; Damien Richardson, Head of Innovation and Strategic Initiatives, RBS; Darren Earnshaw, Head of Lending Technology, Barclays; and Tim Newns, Chief Executive, MIDAS, Manchester’s inward investment agency.

 

*TheCityUK 2013

**2015 eFinancial Careers Research

 

Reich Insurance – a local broker with a huge appetite

Reich InsuranceIt has been an extremely busy year for the team at Reich Insurance Brokers, based on Chapel Street in Salford. With a 12 per cent increase in headcount this year alone, and the company about to recruit their 100th member of staff this week, CEO Simon Taylor is clearly confident about the future prospects of the industry and growth opportunities within the market too.

Indeed Taylor, along with longstanding Chairman Danny Lopian, is so confident that Manchester is the place to be for aspiring brokers, that they have recently purchased the adjacent building to their office; a move which will more than double the space Reich currently occupies to just under 10,000 square feet.

“As our workforce continues to increase, we realise that we need more space so we can continue to expand. This will enable us to do so,” said Simon Taylor, CEO, Reich Group of Companies.

With intensive renovation work expecting to last another 6 months, the new ‘Reich House’ will be a welcome addition to the local area; Salford particularly is now benefiting from other huge investments locally, such as the New Bailey development, which opens this month.

Reich Insurance Brokers certainly has a lot to celebrate this year with a Downtown in Business accolade for Business of the Month in May, shortly being followed by their first ever nomination for Business of the Year at July’s magnificent City of Manchester Business Awards.

In July Reich was also inducted into the prestigious Insurance Post Top 50 Brokers list for the first time in it’s history – evidence that hard work from a committed team and strategic, long term vision in the face of challenging economic conditions will always reap it’s rewards.

Clearly it’s onwards and upwards for Reich, as well as many other ambitious companies within this incredible city. Evidence we are sure, that the spirit of the Northern Powerhouse will continue for some time to come.

If you would like Reich to quote on any of your insurances, or would prefer a local visit from an expert member of staff, contact Reich by calling 0161 834 8877 or by emailing info@reichinsurance.co.uk.

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