Female-led UK Fintechs Show 30% Rise in Revenue Growth
A recent report titled “Scaling UK Regional FinTech” highlights the revenue growth of fintech companies founded by women in the UK. Despite only 16% of growth-phase fintech firms having female founders, these businesses achieved over 30% higher turnover growth compared to their male-founded counterparts. The report, jointly conducted by Innovate Finance, Streets Consulting, and Whitecap Consulting, analyzed the growth trajectories of 250 UK-based fintech scaleups outside of London.
The study revealed a significant relationship between gender diversity in leadership and financial performance. It also emphasized the importance of fundraising for fintech companies, with 9 out of 10 firms that participated in accelerator programs successfully raising funds. However, the report also noted the challenges faced by female founders, as fewer than a fifth of fintech firms are founded by women.
The report delved into the market strategies of fintech scaleups, pointing out that 87% of these companies incorporated a business-to-business \(B2B\) element in their go-to-market approach. Interestingly, B2C firms that secured funding reported double the revenue and employee growth compared to B2B-exclusive firms. The sectors of payments, wealth tech, and prop tech stood out for their growth and success in fundraising.
Based on the analysis, the report offered actionable recommendations for entrepreneurs, investors, policymakers, and the wider fintech sector. These recommendations included fostering diversity in leadership, encouraging participation in accelerators, and adopting a national perspective to support the growth of the fintech industry beyond London.
Overall, the report highlights the benefits of gender diversity in fintech companies and the importance of fundraising for their growth and success. It also underscores the need to address the challenges faced by female founders in the industry. By implementing the suggested recommendations, stakeholders can contribute to the continued growth and success of the UK fintech sector.