A new regional growth strategy, developed in response to a national strategic review of FinTech, has identified the opportunity to create more than 2,000 new jobs in the North East by the end of 2025.

The new strategy has been developed by Whitecap Consulting with the support of key stakeholder organisations in the public sector, private sector, and higher education. It outlines a high level plan for the region to create more and better jobs, develop a collaborative, sustainable, growth-focused FinTech hub, and to foster regional, national and international connectivity.

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In addition to the new jobs, the Gross Value Added (GVA) created by FinTech is forecast to increase 11% per year, to reach £431m in 2025, and the number of FinTech firms is expected to nearly double to 81 (currently 45). The report finds 76% of the region’s FinTech firms are currently based in Newcastle, Gateshead or Sunderland, with 11% in Durham, and 9% in the Tees Valley region.

The project follows an independent national strategic review which identified the Newcastle and Durham area as one of the top ten FinTech clusters in the UK. The Review of UK FinTech, published in February 2021, showed the fast-growing sector generates £11bn of GVA for the UK each year. The strategy was launched at an event in Newcastle on 19th October, hosted by Womble Bond Dickinson.

FinTech, the use of technology to enhance the delivery of financial services, is a growth industry in the wider North East region that has been driven by substantial levels of investment and employment. This investment has paid dividends, with a 58% increase in the number of firms operating in the FinTech sector over the last 3 years, including an 81% increase in the number of FinTech startups and scaleups, nearly a third of which are organisations that have chosen to expand their operations into the North East.

Richard Coates, Managing Director at Whitecap Consulting, said: “The key to successful implementation will be the way the region takes ownership of the actions and works collaboratively to deliver them. Our analysis shows that the growth of FinTech in the North East over the last 3 years has primarily been driven by tech sector expansion and inward investment success in attracting new FinTech and tech firms to the region.”

Dr Henry Kippin, North of Tyne Combined Authority, added: “Digital and the digital sector is a key component of our economic vision, and our existing investments in skills, infrastructure and innovations are aim to cement our region’s status as one of the most exciting digital economies in the UK and around the world.

The recent success of the FinTech sector showcases the very best of the North of Tyne and wider regional economy; collaboration between public, private and higher education, innovation across sectors and supply chains, and clustering of expertise which proves hugely attractive to inward investment."

Rachel Burdis, Inward Investment Manager, Invest North East England, said: “The North East’s growing FinTech community will greatly benefit from a regional strategy, focused on increasing business activity, funding and sector growth. We look forward to continuing work with local partners on this plan and championing the region, whilst promoting the unique opportunities for investors.”

 

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