London is truly the capital for any fintech startup in Europe thanks to its location, being an international hub for financial service, having a bunch of tech talent around, and having a friendly regulatory environment.

Looking at how many Nordic and Baltic entrepreneurs choose to base their fintech startups in the UK, we wanted to take a look at the reason for why:

1) A good in-depth pool of talent

London is an international finance capital of the world, and it is undoubted that the place has a very good pool of talent, with outstanding access to financial expertise. With more than 1.2 million people employed in financial service sector London has an unrivalled lead in financial expertise, ahead of New York and Hong Kong. Entrepreneurial spirit and leadership skills – also crucial to succeed in the fintech business are also accessible in the UK.

According to Stack Overflow data, London and California are sharing the world-leading position in concentration of professional tech developers. While California has benefited from numerous tech companies headquartered there, London is becoming an increasingly favoured location for European headquarters of international tech firms – five out of top 14 tech companies are based in the heart of the UK.

2) Easy access to capital

While bigger companies in later stages tend to drift to the US, the UK is the golden place for early-stage investment. The UK generated £524 million in fintech investments, making it the third-largest region by capital investment.

London is the digital heart of the UK, where any startup can easily get access to a variety of schemes such as start-up loans, UK Angel CoFund, and other government-supported initiatives.

“Also significant is London’s access to pan-European, US and Asian investors, and the number of high-profile accelerator programmes in the Capital, plus strong government advocacy for fintech,” Jason Purcell, CEO of specialists investment bank FirstCapital, has told Forbes magazine.

3) Regulatory environment

The strength of London’s policy environment is coming from the supportiveness and accessibility of Financial Conduct Authority (FCA). Recent initiatives have allowed businesses to test out financial products and services in a proposed environment that is exempt from standard regulations.

4) Demand in the industry

According to Global Financial Centre Index, London is the global financial capital, and this has provided an extraordinary platform for fintech solutions. In addition, the SME market is the largest in the UK and plus modern businesses are more open to innovative solutions, especially in alternative finance and payment subsectors.

From the consumer perspective, the adoption of fintech is also becoming mainstream. According to the EY Fintech Adoption Index 25% of digitally active consumers in London identify themselves as fintech users.

As we are getting ready for Arctic15, we also have a lot of Fintech startups and investors at the venue. UKTI, an organisation helping companies to expand and grow in the UK, will also be present.

So if you got interested and would like to know more reasons as to why the UK is a good choice for your company, you can find their stand at the event, or register for their workshop titled: “Passion branding on the road to international growth – Focus in the UK market expansion.”