The Welsh fintech industry is making strides in gender diversity and inclusivity, setting a gold standard that surpasses the rest of the UK, according to the second annual report by FinTech Wales.
FinTech Wales, an independent membership association and champion of the fintech and financial services industry in Wales, outlines in its new report that there are currently 22,900 active, female-led companies across the nation. This equates to 34.6 per cent of Welsh businesses that have a woman in a leadership position — a higher proportion than any other UK nation.
The Fintech in Wales Annual Report for 2022/23 report provides insights into the fintech ecosystem in Wales and makes key recommendations for the future growth and success of the industry.
Investment into Welsh fintechs has increased by over 300 per cent since 2022 and plans to create a thousand jobs over the next five years will contribute to the thriving sector across Wales.
“There is so much to be proud of in the Welsh fintech sector and the report allows us to shine a light on these successes and shout about the progress we are making,” says Louise O’Shea, chair of FinTech Wales. “All of which has earned Wales a reputation as a hub of excellence for financial technology.
“We’ve seen a significant increase of funding from various sources, which has propelled the industry’s expansion, resulting in a stable and positive employment outlook. We are also delighted to see international expansion from Welsh fintechs. These achievements speak volumes about the skills, talent, and innovation present within our ecosystem.”
Insights in the report
The report records a significant 300 per cent increase in investment since 2022, with records of £53million in publicly announced investments made up until October 2023. It also applauds the international success Welsh fintechs have achieved through various expansion, partnerships and acquisitions.
Estimates suggest that the fintech sector in Wales employs over 16,000 people. While the employment landscape has remained stable over the past year, established organisations, including banks, are actively planning to generate a thousand job opportunities in 2024, signalling a positive outlook.
The report also highlights other areas which have seen significant growth in 2022/23, including the ‘fintech for good’ sector, which aims to proactively address issues such as the cost of living.
FinTech Wales has put forward several recommendations in its annual report, which includes increasing funding to support further growth, developing the necessary skills within the industry, fostering collaboration with adjacent industries and key infrastructure providers, renewing and strengthening support for scaling businesses, and ensuring continued government support.
“The potential for international expansion, combined with the industry’s dedication to gender diversity, positions Welsh fintech as a promising and dynamic sector within the global fintech landscape,” Sarah Williams-Gardener, CEO of FinTech Wales, also commented.
“With the implementation of the recommended measures, Wales will continue to firmly establish itself as a leading global hub for fintech innovation, setting the benchmark for excellence in the industry.”