Fintech
Norfolk’s fintech sector is expected to be worth more than £100 million by 2027
Norfolk’s fintech sector is growing rapidly, with a strong insurtech presence and £49m of investment, contributing significantly to the local economy and laying the foundations for future innovation and diversity.
While London still holds the title of the UK’s largest fintech hub, it’s clear that the growth of the sector outside the capital cannot be overlooked. The latest study of Norfolk’s financial technology landscape predicts that Norfolk’s fintech sector could be worth £100m by 2027, with the number of fintech businesses doubling within the next three years, potentially introducing over 600 new job opportunities throughout the region.
The study, commissioned by Tech East and produced by Whitecap Consulting, came after a period of increased innovation and economic expansion in the region. From 2010 to 2021, Norwich, Norfolk’s largest city, achieved the highest increase in real hourly output of any UK city (2.3%). Additionally, it secured eleventh place nationally for density of “new economy” businesses per 10,000 individuals in the workforce.
Norfolk is currently home to 24 fintech firms which have collectively raised a total of £49m in investment and are part of a wider East of England cluster estimated at over 80 fintech firms.
Norfolk’s thriving insurtech hub
The report also sheds light on the growing insurtech sector in Norfolk, where the insurance sector employs over 7,500 people, positioning the region as a major hub outside London. In particular, Norfolk’s financial services sector produces over £1 billion, making up over 20% of the city’s gross value added (GVA). Furthermore, Norfolk boasts the second highest concentration of insurtech companies in England, behind only London.
Ben Luckett, Managing Director of Venture Capital at Aviva, commented: “With a strong support ecosystem and proximity to major investor hubs such as London and Cambridge, it is clear that Norwich offers a fantastic environment for thriving insurtech ventures. Add to this a vibrant academic community and access to great early career support, including apprenticeship programs in areas such as software development and data analytics, and you have a growing pipeline of skilled professionals and innovative thinkers ready and waiting to help Norwich join the likes of established clusters like Cambridge.”
Norfolk’s fintech scene is a rich ecosystem comprising financial services firms, finance technology providers and a supporting network of specialist businesses spanning professional services, finance, education and the public sector. These different players all contribute to the growth of Norfolk’s economy, providing essential skills and resources for local fintech startups. Leading this charge is the Financial Industry Group (FIG), representing the region’s financial, professional and business services sectors, actively involved in shaping the landscape and development, as highlighted in the recent report.
Sustainability and diversity
Despite Norfolk’s relatively modest size, its fintech sector demonstrates impressive performance on several fronts, including sustainability and diversity. In particular, Norfolk boasts an above-average percentage of female fintech founders of 17%, surpassing all other English regions outside of London.
Additionally, wider analysis of the Norfolk economy by mnAi identifies 342 fintech-relevant SMEs, with a combined net worth in excess of £250m. Over half of these businesses operate with extremely low emissions, above the UK average.
Lisa Perkins, president of Tech East, expressed her optimism about Norfolk’s fintech potential: “The region is already a leading insurtech hub, also standing out for sustainability and diversity within the fintech realm and there has been much interest and support to ensure this.” growth continues. However, to truly unlock this potential and pave the way for sustained growth and innovation in the region, we must build new relationships and partnerships that expand investment options for innovative new businesses, while seeking to foster a collaborative ecosystem that supports both established players and emerging startups alike.
Support young and local talent
The report also highlights the growing support infrastructure for Norfolk’s fintech sector, citing initiatives such as the inaugural Norwich FinTech Hackathon and the University of East Anglia’s ‘FinTech Lab’ and postgraduate masters in fintech.F
Julian Wells, Director and Head of Fintech at Whitecap Consulting, highlighted the spirit of collaboration between Norfolk stakeholders to nurture the fintech ecosystem. “This is the first time that payments are not the main subsector in a region. The proportion of female fintech founders is the highest we have seen to date, giving Norfolk a crown that any region would desire. There is strong potential for economic growth through the fintech sector in the region and collaboration at regional and national levels can help foster this.”