20150414_한국핀테크포럼_5차정기모임_영국 사례

1. WHY
LONDON
FOR FINTECH

2. CONTENTS
Definition of FinTech 4
Strong FinTech hub 6
Availability of customers and investors 18
Talented workforce 24
The city for business 32
Incentives and support 34
How we can help 39
2

3. EXECUTIVE SUMMARY
3
Strong FinTech Hub
FinTech is strong in Britain, in 2013 the sector
grew by 91% to almost £1bn and further increases
are anticipated for 2014. Growth is supported by
the presence of global technology and financial
services hubs in London as well as being home to
globally renowned FinTech companies. London is
thought to be the FinTech capital of Europe
Talented workforce
London is a powerhouse for FinTech talent, there are
estimated to be more FinTech workers working in
London than its main rival New York. According to
Accenture nearly 40% of the London workforce
worked in the financial services and technology
sectors in 2013
The city for business
London is an attractive business environment,
substantiated by its position at number one in
the PWC City of Opportunity Index. London’s
working hours, location, flexible employment
law and low cost legal structures make it one
of the easiest cities in Europe to do business
Incentives and support
London offers specific tax breaks for
technology businesses through R&D tax
credits and the patent box scheme
Availability of customers and investors
Together UK and Ireland accounted for more than half
of European FinTech deals in 2013, the vast majority
taking place in London. In addition to financial support
London has three globally celebrated FinTech
accelerators providing support and guidance to
businesses. The UK consumers provides the perfect
test bed for products due to their high adoption of
financial innovation

4. 4
FinTech is technology that engages with or delivers financial
services1

5. UK FINTECH MARKET IS SPLIT INTO FOUR KEY
SUBSECTORS
5
Payments
(total value c. £10bn):
infrastructure £8.1bn;
online £1.9bn
Software
(total value c. £4.2bn):
software to financial
services £4.0bn;
accounting £0.2bn
Financial
data &
analytics
(total value c. £3.8bn):
credit reference
£1.0bn; capital
markets £2.2bn;
insurance £0.6bn
Platforms
(Total value c.
£2.0bn): peer to peer
<£50mn; trading
£0.8bn; personal
wealth £0.7bn;
aggregators £0.5bn

6. STRONG FINTECH HUB

7. 7
Britain’s FinTech sector is growing
fast, it is estimated to have
expanded by 91% in 2013 to almost
£1bn and in 2014 it is expected to
be worth £1.6bn1

8. We decided early on that London was the right fit for us. The UK is
one of the largest markets in Europe, but more than anything, a
hub for start-ups and entrepreneurs. We wanted to be part of the
booming tech scene allowing us to be close to our customers and
support them in person as best as we could. London is also an
easy travel hub both for Europe and the US so we can quickly visit
key markets across Europe and visit our teams in the US.
Braintree

9. THE GROWTH OF FINTECH HAS BEEN
HELPED BY THE PROXIMITY & STRENGTH
OF COMPLEMENTARY SECTORS IN LONDON
9
FinTech
London is a leading financial
centre
Every major bank and financial
institution in the world has a
presence in London3. London is
home to 4 of the 10 largest banks
in the world4
London is the home of
European Headquarters
The capital has attracted three
times more European
headquarters than any other
European city since 20035.
London has a strong
technology cluster
London’s established digital tech
cluster continues to grow with an
anticipated annual increase of
5.1% for the next 10 years2
London has a large creative
talent pool
London’s creative industries in
2013 employed 518,000 people1

10. The best FinTech businesses are coming out of London. It's where
job and wealth creation is going to come from. The U.S. can be a
very innovative place, but when it comes to FinTech, regulation
stifles innovation.
Jeff Lynn, co-founder and CEO at equity crowdfunding
platform Seedrs

11. LONDON IS A WORLD LEADING FINANCIAL
CENTRE
11
The UK is the second-largest
asset management centre in the
world after the USA, accounting
for 36% of European assets
under management3
In trading related activity, and in
particular foreign exchange and over
the counter derivatives3. 60% of the
UK total FX turnover in April 2013
was in London4
In insurance, accounting for 7% of
worldwide premiums, and with
particular strengths in specialty
insurance3
In banking and cross-boarder lending3
No.1
No.1
No.1
London has 251 foreign banks, 588 foreign
quoted companies1. The UK is number one
across several key financial sectors:
Financial institutions in
London are pro innovative
technologies to enhance the
customer experience.
According to Frost and
Sullivan, financial
institutions in the UK spent
€9bn on ICT in 2011 and the
market is expected to grow
to approximately €10bn by
20162

12. 12
LONDON HAS THE HIGHEST
CONCENTRATION OF GLOBAL FINANCIAL
INSTITUTIONS1
A leading commercial
centre with a reputation
for management
innovation
One of Europe’s most
advantageous
employment regimes
A city of diverse talent
in an environment
which offers a unique
lifestyle
The ease of setting up
and doing business
here
A capital offering global
connectivity and
exceptional value

13. 13
LONDON HAS BEEN THE PLACE FOR START-
UPS TO GROW INTO A GLOBAL BRAND
Barclays launched its new mobile payment service Pingit, which allows customers to send and
receive money person to person using their mobile phone numbers. In the same month, it became
the most popular financial app in Apple’s UK App store, and during the next 100 days, customers
used it to send nearly £10 million. When Barclays announced its full year results for 2013, it noted
that the number of customers now using Pingit had doubled to more than one million1
Misys is a multinational software company, based in London. It specialises in software for
banking, capital markets, lending, enterprise risk and investment management. Founded in
1979, Misys now has 4,500 employees, and more than 2,000 customers across 130
countries2
Markit is a leading provider of financial information services, providing products that enhance
transparency, reduce risk and improve operational efficiency – for example through independent
data, trade processing of derivatives, foreign exchange and loans, customised technology
platforms and managed services. Its customers include banks, hedge funds, asset managers,
central banks, regulators, auditors, fund administrators and insurance companies. Founded in
2003, Markit now employs over 3,000 people in ten countries. In 2012 the company had annual
revenues of US$860 million, and it raised US$1.28 billion in an initial public offering in 20142

14. 14
London based Monitise plc is a technology and services company that has grown in just over a
decade, to become a world-leader in mobile money – banking, buying and making payments with
a mobile device. Monitise provides services to more than 350 financial institutions and leading
brands globally, with 28 million users, and it processes 3.4 billion mobile transactions annually, to
the value of US$71 billion. Now with 750 employees, Monitise had a market capitalisation of £55.9
million when it was listed in 2007. The UK has been one of the fastest adopters of peer-to-peer
lending, to the value of £843m in 20131
MarketInvoice has developed an award-winning online marketplace, allowing
companies to sell outstanding invoices, confidentially, to raise working capital.
Launched in 2011, the platform allows small and medium-sized businesses who have
outstanding invoices to large corporates to trade these with institutional investors,
online. By November 2013, the company was trading £10 million of invoices a month.
In August 2013, MarketInvoice was awarded £5 million in UK Government funding to
lend to small businesses, through the Business Finance Partnership – a scheme to
boost finance through non-bank lenders1
TransferWise is a peer-to-peer currency exchange service that enables low-cost transactions
between individuals. As co-founder Taavet Hinrikus notes “with London being a financial centre it
helps when you are dealing with financial technology as we are and we are also close to a lot of
the people that we have partnered up with. Since 2011, TransferWise has grown from 2 people to
over 50 employees today. They recently announced a $25 million funding round, backed by Peter
Thiel’s Valar Ventures, Index Ventures and Richard Branson, among others, bringing the total
investment in the firm to $33 million. It has reportedly facilitated over £1 billion worth of currency
transactions and claims to have saved its customers over £45 million in transaction fees1
LONDON HAS BEEN THE PLACE FOR START-
UPS TO GROW INTO A GLOBAL BRAND (2)

15. The number of digital technology
businesses is expected to increase to
over 45,000 by 2024, growth of 2.7% per
annum1
LONDON’S DIGITAL TECH SECTOR IS
GROWING FAST
London’s digital tech sector is
anticipated to grow rapidly over the next
10 years by an average of 5.1% pa
creating an additional £12 billion of
economic activity over the next 10 years1
15
The UK’s domestic internet
industry alone creates 8.3% of
the UK’s GDP, according to
Cobalt, compared to 4.7% in
the US and 3.8% on average
across the EU

16. FINTECH COMPANIES HAVE CLUSTERED
AROUND THREE KEY AREAS IN LONDON
16
Canary Wharf
Tech City & Silicon
Roundabout
The City of
London
These three areas have historic ties with either technology or finance and their
close proximity to each other makes this area an attractive base for FinTech
companies

17. LONDON HOSTS MAJOR EVENTS & MEET
UPS FOR THE GLOBAL FINTECH INDUSTRY
17
FinTech City
The team behind the
FinTech50 organise
events for European
FinTech companies to
engage with funders,
investors, buyers and
acquirers
Finovate Europe
On February 10 & 11,
2015, Finovate returns to
London with
FinovateEurope, a two-
day showcase of the
latest and greatest
financial and banking
technology innovations
from leading established
companies and hot young
start-ups
New Finance
The Leading Global
Financial Technology
(FinTech) Innovation
Network is a global
network of over 2500
professionals actively
involved in Financial
Innovation through
Technology who regularly
meet up in London
Innovate Finance Global
Summit 2015
The inaugural Innovate
Finance Global Summit
2015 on the March 9th will
bring the biggest
influencers in finance and
government together with
the greatest social
visionaries, educators
and innovators to discuss
the ways we can create a
more substantial financial
services sector that offers
better services and better
choices for everyone

18. AVAILABILITY OF
CUSTOMERS & INVESTORS

19. FINTECH INVESTMENT IS STRONG IN
LONDON, THE LARGEST IN EUROPE
19
Despite having a population that is one
fifth the size of the US, investment in UK
FinTech is half that of the US, which
means that the UK, and London in
particular are really strong in the global
FinTech innovation arena1
In 2013, UK and Ireland together
accounted for more than half of
Europe’s FinTech deals (53%) and
more than two-thirds of its total
financing (69%, or $265 million)
Together, the volume of FinTech
deals triple since 2011. The
amount of capital they attracted
in that time grew 51% annually –
compared to 39% in the rest of
Europe – with the vast majority of
activity taking place in London1
WorldRemit, a London-based start-up
aimed at the consumer money
wiring/remittance market got $40 million
investment from Accel Partners (which
has backed Supercell and Facebook)2

20. 20
FINTECH COMPANIES ARE SUPPORTED BY
THREE BIG LONDON FINTECH
ACCELERATORS
London specific entrants to
2014 programme (5 out of
the 11 selected):
Entrants to 2014
programme:
A selection of FinTech
Innovation Lab London
participants:

21. LEVEL39 SUCCESSES
21
Thomas Gatten, CEO of Growth Intelligence said: “Growth Intelligence has doubled in size
since moving into Level39 in earlier this year.”
Francesco Fumagalli, CEO Crowdrooster said: “Crowdrooster’s workforce has doubled in the
three months since moving into Level39, and we forecast that it will triple in the next three.
Level39 has been a key factor for achieving our goals, thanks to their care and understanding
of start-ups and moving into the high growth space is a great opportunity.”
Pirean were the first company to graduate from Level 39 to become a tenant at Canary Wharf.
They converted from member to tenant before Level39’s first anniversary:
“Canary Wharf Group enabled us to grow our London presence from scratch, providing the
flexibility and support that we needed during a period of rapid growth and expansion. Level39
provided an excellent environment for creativity and collaboration – and it’s an important part
of the infrastructure that we are looking forward to benefiting from as tenants of Canary
Wharf.”
The participants in the first London Lab: BehavioSec; Calltrunk; Digital Shadows;
Growth Intelligence; Kiboo; Open Bank Project and Waratek; have already achieved
notable successes. The majority have gone on to sign deals with banks since
completing the programme. Nine months after completing the Lab, participants
reported average revenue growth of 140%, staff increases of 40% and
approximately $10 million in new financing1

22. 22
PAYPAL AND SANTANDER HAVE INITIATIVES
FINTECH BUSINESSES IN LONDON CAN
TAKE ADVANTAGE OF
Santander has launched a $100m
FinTech fund (July 2014). The fund
will be London-based but will have
global remit. FinTech firms struggling
to get funding could now look towards
Santander as a possible investor
British start-ups are being given the
opportunity to work out of PayPal’s
London offices for six months. Start Tank
London, which follows the first Start Tank
programme in Boston, will select up to
five of UK start-ups to be housed for
free. They will have access to mentors
through PayPal and Braintree, the
mobile payments companies

23. THE UK CONSUMER IS MORE OPEN TO
FINANCIAL INNOVATION
23
Per capita UK consumers spent
in 2012 £1,175 on e-commerce
compared to £374 in Germany
and £539 in France1, the largest
spend per capita online globally
second only to the US in terms
of volume of sales
In 2012 30% of the population in
the UK obtained car insurance
through aggregators, compared
to 22% in Germany and 11% in
France1
The UK has been one of the
fastest adopters of Peer-to-peer
lending with gross advances
almost doubling every year
since 20101

24. TALENTED WORKFORCE

25. 25
London has an abundance of financial
services and technology talent - in 2013
financial services and technology sectors
made up nearly 40% percent of the London
workforce1

26. 26
London is the centre for FinTech
talent with an estimated 44,000
FinTech workers within 25 miles of
London, compared to 43,000 for
New York and only 11,000 for San
Francisco Silicon Valley1

27. London is a magnet for FinTech
innovators with 30 people in the 40
European Innovators Shaping the
Future of Finance based here in
London1.

28. 2828
The number of people employed in digital
technology in London is anticipated to
continue growing with an estimated 46,000
net jobs by 20242

29. 29
LONDON DRAWS IN THE BEST DOMESTIC
AND INTERNATIONAL TALENT
With 37% of London’s workforce
born abroad3, conducting business
internationally is easier with 233
languages spoken in the city4
The global marketplace is extremely
important and the government has
recognised this through their
Exceptional Talent Visa for those in
digital technology and the arts
London was #1 as a preferred
relocation destination for
professionals1
London is also the most popular city
in the world to consider working
abroad according to Boston
Consulting Group2

30. 30
London has 5 of the world’s top 100
prestigious institutions. Three of
whom have centres of excellence in
ICT1. International students make up
26% of all students studying in
London

31. LONDON UNIVERSITIES PROVIDE A STEADY
STREAM OF NEW TALENT
In 2012/13 approximately 54,875
students were studying business
and administration in London
universities and about a further
39,680 students were studying
computer science, engineering and
technology1
There were around 23,015 students
graduating from business and
administration courses in London
universities in 2012/2013 and
approximately 13,175 in computer
science, engineering and
technology1

32. THE CITY FOR BUSINESS

33. 33
London is ranked number one
overall in the PWC’s City of
Opportunity Index1
Flexible employment law and low-
cost legal structures, entrepreneurs’
visas and capital gains tax relief
make London one of the easiest city
in Europe in which to do business
London serves 344 destinations
around the world through its
network of 6 airports
London’s office hours overlap
with those countries that
collectively account for 99% of
the world’s GDP
LONDON IS AN ATTRACTIVE BUSINESS
ENVIRONMENT

34. INCENTIVES AND SUPPORT

35. Creative Industries Tax Relief is
available for those organisations
specialising in animation, film, high-end
television programmes, video games3 and
theatre productions4
THE GOVERNMENT HAS SPECIFIC TAX SCHEMES FOR
INTELLECTUAL PROPERTY, R&D WORK AND THOSE
BUSINESSES WITHIN THE CREATIVE INDUSTRIES
The Patent Box enables companies to
apply a lower rate of Corporation Tax to
profits earned after 1 April 2013 from its
patented inventions. The relief will be
phased yearly and the lower rate of
Corporation Tax to be applied will be
10%.2
R&D Tax Credits for companies carrying
out research or development work in
technology are entitled to tax credits, paid
as a cash sum. Loss-making companies can
exchange tax losses attributable to R&D
relief for a payable tax credit at a rate of
11%1
35
Corporation Tax in the UK was reduced
to 21% in 2014, it will go down to 20% by
April 20154. This Corporation Tax
reduction makes the UK’s tax rate lower
than Germany and the US

36. SPECIFIC TAX INCENTIVES FOR
ENTREPRENEURS AND EARLY STAGE
COMPANIES ARE AVAILABLE IN LONDON
Entrepreneurs’ Relief reduces the
amount of Capital Gains tax on disposal
of qualifying business assets, allowing
investors to realise more capital on their
investment in start-ups and small
companies
The government has introduced a Start-up Loan
Scheme offering loans to over £110 million over the next
three years. The age limit for application has been
extended from 24 to 30 years old3
EMI Options allows start up and growing
companies to grant tax favoured share
options to employees2
Seed Enterprise Investment Scheme (SEIS) is the most
generous early-stage tax break in the world, providing 50%
tax relief for the first £100,000 seed investment highlighting
the commitment the government has to fledgling
businesses1
36

37. Examples of the
FinTech companies
in Tech City
37
FinTech companies
who pitched to the
government
FinTech companies
from the 2013
programme
FINTECH IS ALSO SUPPORTED BY A
NUMBER OF GOVERNMENT BACK SCHEMES

38. LONDON IS HOME TO ORGANISATIONS
WHICH SUPPORT AND OR REGULATE THE
FINANCE INDUSTRY
Innovate Finance is an
industry organisation that
will accelerate the UK's
leading position in the
global financial services
sector, by directly
supporting the next era of
technology-led financial
services innovators,
whether they be a young
start-up or an established
industry player
Tech London
Advocates is a private
sector led coalition of
expert individuals from
the tech sector and
broader community who
have committed to
championing London’s
potential as a world-class
hub for tech and digital
businesses and to
support its start-ups in
finding new investment,
new talent and achieving
high-growth
Financial Conduct
Authority regulate
financial firms and
financial advisers so
that markets and
financial systems
remain sound, stable
and resilient
The Prudential
Regulation Authority
(PRA) is responsible for
the prudential regulation
and supervision of banks,
building societies, credit
unions, insurers and
major investment firms. In
total the PRA regulates
around 1,700 financial
firms

39. HOW WE CAN HELP

40. HOW LONDON & PARTNERS CAN HELP

41. 41
COMPANIES
WE HAVE
HELPED
YOUR
BRAND
HERE

42. 42
How London & Partners helped
• Introduction to lawyers
• iZettle participated in the Tech Wave for the Games Time Hosting Programme
• L&P also introduced them to city stakeholders such as the City of London Corporation and London Chamber of
Commerce
• Conducted a property search for them for a permanent office space
• L&P helped with their office move and fit out
• Introduced them to Ravensbourne College to get access to interns
• L&P also introduced them to recruiters for sales staff and assisted with PR for the launch of their UK product
How London & Partners helped
• Introduction to FSA
• Advised on the essentials of setting up in London
• Introduction to Central Working
• Helped with immigration, introducing to Doyle Clayton
• Introduction to recruitment partner, number of potential jobs to fill in London.
• Introductions to clients and Networking Events and Level 39 where they had their first ever London event
• Gave information on R&D tax credits/patent box
• Introduction to Wingrave Yeats who advised on FSA requirements
• Introduction to residential property partners
CASE STUDIES OF COMPANIES WE HAVE
HELPED

43. Dhaval Gore
+44 (0)7917372969
dgore@londonandpartners.com
Invest.london
CONTACT