Rise of the Fintech Industry in Wales
Wales has the fastest growing digital economy outside of London, and the growth of the financial and professional sector in Wales has led to a thriving Fintech industry.
Historically, the financial service sector was generally slow to embrace change and adopt new technologies. However, the accelerated pace of technological advancement has infiltrated and disrupted the traditional financial services sector in Wales, as key players recognise the benefits of new technologies.
In fact, Fintech companies are characterised by their high levels of innovation and investment in cutting edge technology platforms. Despite this, many start-up companies, particularly in the Fintech arena, are unaware that they could get up to 33% cash benefit from R&D credits. Whilst the Fintech sector is largely digital, there are numerous opportunities to claim such tax credits.
The Welsh fintech scene is now one of the most active in the UK thanks to its innovative talent pool and growing investment opportunities. Wales’ thriving tech ecosystem with its growing supply chain combined with entrepreneurial universities provides a firm foundation for fintech to thrive.
With Welsh fintech hubs located in Cardiff and Newport, Swansea and Wrexham, almost 40,000 people are actively employed within the fintech industry in Wales. The technology sector is worth an estimated £8.5bn to the Welsh economy, and it is continuing to grow with financial and professional services in tow.
There is a vibrant community in Wales’ technology scene, which allows start ups, investors and larger companies to meet and share ideas through accelerators and incubators as well as networking events and flexible workspaces.
Furthermore, Wales is home to the first financial technology undergraduate degree.
With the changing economic and technological climate in Wales, financial services and the technologies that run them will continue evolving to meet newer and faster-changing demands. The agility required in the financial markets of the future will require new innovations in technology and systems.
The opportunities and potential for the Fintech sector in Wales are rich and varied, and the research and development necessary to create these technologies and systems therefore produces opportunities for the R&D Tax Credits.
Matthew Jones, managing director at LimestoneGrey, Wales’ dedicated R&D tax credit specialists commented: ‘It is an exciting time for the Fintech community in Wales, with many opportunities and support systems available for companies.
The introduction of the Fintech Wales Awards by Recruit 121 is the first awards ceremony dedicated to celebrating Fintech companies in Wales which is testimony to its increasing presence and importance.
LimestoneGrey are proud to be supporting the event by sponsoring the ‘Best New Product’ category.
The awards will take place at the Tramshed in Cardiff on 19th July, and with Confused.com confirmed as the principle sponsors, the event will only further boost the sector’s profile.’
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