Brexit notwithstanding, the financial services sector is a powerhouse for the UK economy, its gross value-added (GVA) contributing just under 7% of the UK’s total economic output.
It is also undergoing incredible technology-driven change, with new fintech platforms disrupting unwieldy incumbent institutions across the value chain. In many places, regulatory changes are encouraging innovation and greater competition. The emergence of open banking has begun to level the playing field by reducing the informational advantage of incumbents. Challenger banks and alternative lenders are augmenting this flood of data with advanced analytics to improve the speed of lending and make better credit decisions. In the world of insurance, brokers are fast becoming digitised and utilising technology to give greater choice to buyers (e.g. situational insurance products, which in the case of auto insurance are often supported by telematics). For carriers and other parties in the insurance supply chain, technology is eliminating long-standing manual processes in pricing, underwriting, compliance and claims assessments.
Although London is the global fintech capital by total investment and holds the top spot for fintech unicorns in Europe, many of the UK fintechs and insuretechs are still small. Fairgrove has supported several investors in evaluating the chances of success for early-stage businesses in this burgeoning sector.
Fairgrove has experience of the following sub-sectors within financial services:
- Fintech Platforms
- B2B Insurtech Platforms
- SME Lending
- Asset Finance
- Life Insurance
- Lloyd’s of London and Delegated Authority Insurance
- Insurance Claims Outsourcing
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