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Prediction: Fintech will be most confident sector in 2020

Fintech firms in the UK are more confident than those in any other sector according to our Risk and Confidence research undertaken in May ‘19...

Their confidence was three percentage points above the general industry average in 2019 and is predicted remain so in 2020, when over 50% of sector leaders expect to be confident in the ability of their business to grow and prosper.  In fact, fintech sits a full five percentage points ahead of any other UK sector in terms of business confidence.

This confidence reflects the fact that fintech is an enormously growing field. The Financial Times reports that $2.2bn was pumped into insurtech

investment alone in the first half of 2019, demonstrating how each area of financial services has its own momentum within the overall boom. 

How do fintech firms expect to spend that investment? According to our research the top three, investment priorities for fintechs will be in technology, equipment and hiring permanent staff in 2020. 

But while firms have the confidence to invest in both infrastructure and people in the coming year, there is a darker side to fintech’s seismic industry changes.

This is highlighted in the PWC Fintech report for 2020, Embracing disruption.[3] The report comments that “the accelerating pace of technological change is the most creative force – and also the most destructive one – in the financial services ecosystem today.”  In fact, as they look ahead to May 2020, fintech firms rank technology as their joint second most significant risk behind economic risk, and equal to political risk.  If fintech firms get technology choices wrong, they know the consequences will be significant.

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