The financial technology sector will continue to thrive in London, even as uncertainty coupled with Brexit continues to weigh on the economy, according to a study.
Early Metrics, a global rating agency for start-ups and small to medium-sized enterprises (SMEs), found that the British capital still outranked that of its European peers.
Based on analysis of 1,500 fintech firms across the continent, the study found that London’s leadership in the fintech arena had felt a clear challenge from the U.K.’s vote to leave the European Union. But Early Metrics said that, despite this, London was “likely to remain Europe’s fintech hub in the medium term.”
“The U.K. is currently facing its most serious challenge so far as the fintech hub of Europe,” Antoine Baschiera, CEO of Early Metrics, said in a statement Monday.
“Although it’s too early to draw any definitive conclusions on what impact Brexit will have, companies are already assessing the implications of fundraising, talent acquisition and talent retention. Many fintech businesses rely on fast developing technologies in order to maintain a competitor advantage. This requires a company to be able to move quickly and have access to the right talent across borders.”
London was host to 17 of the top 50 international fintech firms, according to a study by KPMG and H2 Ventures last year. The first half of 2017 saw $564 million of funding invested in British fintech start-ups, according to industry body Innovate Finance.