Taste all the many flavours of the vast technology revolution

There are many​ ​flavours - Cleantech, Biotech, Cybertech, Agritech and Fintech are just a few. However this broad​ ​menu only serves to highlight the phenomenal array of ways in which the powerful combination of​ ​ubiquitous computing and connectivity has the potential to make a mark on the way we live our​ ​lives.

One area that will likely directly impact our lives the most is Fintech – the application of new​ ​technologies to the world of banking and finance.​ ​This technological change is democratising​ ​finance and fundamentally changing the way financial services firms operate. It is using tech to put​ ​choice in the hands of individuals and businesses and changing their relationship with lenders.​ ​As the​ ​financial crisis demonstrated, when bank lending dries up, an economy based on a single form of​ ​finance is fragile, which is why the growth of alternative sources of business funding should be​ ​cheered.

The UK is leading the Fintech revolution - long a finance powerhouse, in recent years it has​ ​developed itself into a Fintech capital. Ernst and Young recently highlighted that with 61,000​ ​employed in the sector, more people work in UK Fintech than in the industry in New York or in the​ ​combined tech workforce of Singapore, Hong Kong and Australia.

The UK Fintech sector represented​ ​approximately £6.6​bn in revenues in 2015 and attracted around £524​m in investment.

And, the UK and Ireland account for more than 50 per cent of European technology venture capital​ ​measured by number of deals and 69 per cent measured by funds invested.

Fintech companies include crowdfunding platforms, which allow a business or project to raise​ ​financing by asking a large number of individuals for a small amount of money; peer-to-peer lenders,​ ​which provide online services that match lenders directly with borrowers and mobile, mobile-first​ ​banks, and real time payment firms which dramatically speed up the time taken for online​ ​transactions.

The UK leads the world in eCommerce adoption, and with the innovative regulatory​ ​support of the UK Government, we are becoming increasingly interested in crowdfunding – indeed​ ​on March​ 3​ this year, London-based mobile banking company Mondo raised £1​m on​ ​Crowdcube, an equity crowdfunding platform, in a little over 90 seconds.

At first sight, these alternative sources of funding might appear to be direct competitors to London​ ​Stock Exchange but we are supportive of this innovation taking place.

London Stock Exchange is passionate about the power of equity over debt to support companies’​ ​long term growth. To realign this funding imbalance, we believe that a comprehensive equity​ ​financing ladder must be established, with crowdfunding and Venture Capital working alongside the​ ​public markets. The Fintech sector is playing a critical role in this readjustment by making these​ ​alternative forms of investment (on both sides of a deal) available to individuals and business.

But equity funding from private platforms is not the only form of financing backing Fintech or any​ ​other kind of tech. The UK public markets are also providing robust support. Last year, Worldpay, the​ ​payments processing company used everyday by millions of people across the country, listed on​ ​London Stock Exchange in a £2.48​bn deal. It was the world’s largest technology IPO by deal size,​ ​and the second largest by valuation.

The UK is emerging as a Fintech powerhouse – we posses a rare and powerful combination of a​ ​strong financial sector, supportive Government, vast network of advisory institutions, excellent and​ ​motivated talent with a deep knowledge of the industry.

Vitally, this is not a London story but a national one, as Tech City UK showed us last month in their​ ​Tech Nation report. This in-depth study highlighted there are Fintech companies flourishing across​ ​the country, including in Leeds, Sheffield and Rottherham - areas identified as Yorkshire’s largest​ ​tech clusters.

These companies and their contemporaries across the UK are generating global interest, so now is​ ​the time for us all to develop a taste for the many flavours of tech. This technology is changing the​ ​world and will allow finance to become increasingly open and accessible to everyone.