Yorkshire businesses are matching London’s fintech drive, says study
Yorkshire businesses are matching London’s appetite for fintech adoption, according to new research.
The study commissioned by global finance and payments platform, Airwallex, and conducted by think tank, the Centre for Economics and Business Research concluded that Yorkshire recorded the highest adoption rate among the UK regions included in the study, with more than two in five (44 per cent) using fintech providers, which is the same proportion as businesses in London.
Joe Roche, General Manager at Fintech North, a regional UK FinTech hub, said: “Yorkshire’s FinTech strength is built on more than individual businesses adopting new technology.
"It comes from the depth of the region’s wider, highly-connected ecosystem, bringing together financial services firms, technology companies, universities and entrepreneurs. The opportunity now is to turn that growing capability into more investment, collaboration and internationally focused businesses.”
However, Ben Hornby, Head of UK SME and Growth at Airwallex, warned that significant barriers to growth remain. Two in five Yorkshire businesses surveyed said they had walked away from a new market entry, partnership or contract because of payment complexity in the past year.
“Yorkshire businesses have strong local foundations and an innovative ecosystem that will encourage them to pursue growth beyond their postcodes, but legacy infrastructure can still blow entrepreneurs off course,” said Mr Hornby. “The cost, delay and complexity of moving money across borders can quickly become a barrier to scaling.”
Two fifths (39 per cent) of businesses across the North of England said they would invest in building new products or technology if payment friction was resolved, while almost a third (32 per cent) would use the savings made to expand into new international markets, according to the survey.
“Yorkshire businesses have the appetite to grow, and quickly, now that AI-powered tools and solutions are at their fingertips, but they need infrastructure that can keep pace with their ambitions,” said Mr Hornby. “Achieving that growth begins with paying closer attention to practical barriers that do not make the headlines. That means asking - how much does it cost to pay an overseas supplier? How long does it take for money to arrive? And how many hours are finance teams losing to problems that should be straightforward to solve?”
“By getting these fundamentals right, Yorkshire businesses will be better placed to seize new opportunities as they become available and help fulfil their potential.”