Both London and New York City have long been top global financial centers, and both locales have emerged as Fintech leaders. The sheer size of the US market has helped NYC maintain a significant advantage over London in global rankings, but a report shared today claims that London is “closing the gap” when comparing the two metro areas.
According to research from the Z/Yen Global Financial Centres Index, which ranks 121 locations, London remained in second place with 750 points, up three points from its previous report in March. NYC holds 763 points, down one from its previous ranking. After NYC and London, Hong Kong and Singapore follow in third and fourth place, respectively. Continental Europe only shows up in 10th place, with Frankfurt having 730 points.
Regarding Fintech specifically, New York retains its top position in the Fintech ranking, followed by London. Shenzen is in 3rd.
Laurent Descout, CEO and co-founder of Neo, says he firmly believes that the UK remains a great place to do business. While major markets have suffered in the past year, the panic exhibited by some disparaging London as losing relevance is completely overblown. Neo is a Fintech based in Barcelona but has offices in London and Cambridge.
Descout says London is more accessible for Fintech and startups wanting to go public, contrary to some complaints.
“In addition, London has a deep pool of talent from prestigious universities and a wide array of investors, making it an excellent location to set up and run a Fintech business. Many European cities are vying for its crown so the UK government must continue to champion the city as the key financial market centre, supporting start-ups, increasing investment and making it easier to do business.”
Leo Labeis, CEO of REGnosys, explains that Brexit is in the rearview mirror and that London’s strength as a financial center is solid.
“In addition to its financial ecosystem, London features a technology industry that is second to none in Europe, particularly for Fintech. This unique combination contributes to London’s top position in both financial services and Fintech. Nowhere is this more apparent than in the Regtech sector, which represents a critical growth opportunity for the UK. Strong alignment between government, regulatory bodies, and industry creates a robust framework that empowers firms to enhance compliance through advanced technology. London’s position at the forefront of this effort will not only bolster its financial ecosystem but also drive its ambition to lead on the global stage.”
Policymakers and industry participants understand that helping London remain a top financial hub is vital. This also means that support for emerging Fintechs is vital to maintaining relevance in the fast-moving world of digital finance.
