Janine Hirt
CEO, Innovate Finance
The fintech sector is already well-versed in harnessing AI to improve financial services, including how we detect fraud, assess creditworthiness and personalise financial services.
Artificial intelligence is set to further transform financial services, with fintech innovators and entrepreneurs — already skilled at leveraging technology to boost efficiency, cut costs and improve user outcomes — at the forefront.
Fintech drives inclusive economic growth
UK fintech has consistently had a positive impact on the economy and consumers nationally. According to research from Vested Impact and Accenture, 98% of UK fintechs directly boost economic productivity and growth — through job creation, supporting enterprise and expanding access to financial services. Moreover, 39% of UK fintechs are actively reducing financial inequality, improving access for underserved communities and boosting financial literacy.
According to the British Business Bank, nearly 60% of all SME lending across the UK is done by fintech.
The sector’s economic strength reinforces this momentum. According to Data City, fintech contributes £8.3 billion in Gross Value Added (GVA) to the UK economy, with productivity 60% higher than the national average. GVA per employee in fintech is 1.5 times the UK average; and with a 14.2% annual growth rate, employment within the sector is set to rise from 82,800 to over 109,000 within two years.
Nearly 60% of all SME lending
across the UK is done by fintech.
AI-driven UK fintech leadership
It is these innovative, forward-thinking fintech firms that will continue to use AI to drive a better financial sector. For instance, AI is proving to be one of our strongest tools against financial crime. Many UK fintechs are leveraging AI-powered network intelligence to detect fraud and money laundering; others are using machine learning to spot suspicious behaviour patterns in real time, protecting consumers and institutions alike.
Earlier this year, the UK Prime Minister set out ambitions to make the UK a world leader in AI. The UK is already a world leader in fintech, securing more investment and boasting more fintech unicorns than anywhere else, bar the US. With increasing unpredictability in the US, the UK has a unique opportunity. Our UK Government, regulators and industry must work together to cement our global fintech leadership, which will bolster our UK leadership in AI.
