Women-Led UK Fintechs Witness 30% Surge in Revenue Growth.
A recent report titled “Scaling UK Regional FinTech,” conducted jointly by Innovate Finance, Streets Consulting, and Whitecap Consulting, has revealed that fintech companies in the UK with female founders achieve more than 30% higher revenue growth compared to their male-founded counterparts. The report highlighted that only 16% of fintech scaleup firms in the UK have female founders, yet these firms still outperformed those founded by men in terms of revenue growth. The study also found that the presence of multiple founders positively impacted revenue growth rates, with more than half of the surveyed fintech companies having more than one founder.
The report emphasized the significant relationship between gender diversity in leadership and financial performance. It brought to light the importance of fundraising for fintech companies as well, with 9 out of 10 firms that participated in accelerator programs successfully raising funds. However, the report also highlighted the challenge of gender diversity in the industry, as fewer than a fifth of fintech firms are founded by women.
Additionally, the report explored the market strategies of fintech scaleup companies and revealed that 87% of these companies incorporate a B2B element in their go-to-market approach. Notably, B2C firms that secured funding reported double the revenue and employee growth compared to B2B-exclusive firms. Sectors such as payments, wealth tech, and prop tech stood out for their growth and success in fundraising.
Based on the analysis, the report provided actionable recommendations for entrepreneurs, investors, policymakers, and the wider fintech sector. These recommendations include fostering diversity in leadership, encouraging participation in accelerators, and adopting a national perspective to support the growth of the fintech sector beyond London.
The findings of this report contribute to the ongoing conversation about the importance of gender diversity in the fintech industry. As more evidence emerges linking gender diversity to better financial performance, it is crucial for companies to prioritize gender inclusion in leadership positions. By fostering diverse and inclusive environments and supporting female founders, the fintech sector has the potential to further enhance its growth and success.