Sector set to top 100,000 employees by the year 2030 with 30,000 new jobs created
Innovate Finance, the independent membership association that represents the UK’s global FinTech community, alongside WPI Economics, today releases a report on the potential effects on the UK FinTech sector of future changes to the country’s immigration policy.
The report provides new insight on the scope of the UK FinTech sector which currently represents 76,500 employees of whom 42 per cent are from overseas (28 per cent from EEA countries, and 14% from non-EEA countries).
The report also forecasts that on current performance the sector is set to grow to more than 100,000 employees, and the number of UK FinTech companies more than double to 3,300, by the year 2030.
However, 82 per cent of companies say they already face difficulties in recruiting non-EEA migrants. Under the most likely scenario for future immigration policy, in which the system for EEA migrants moves closer to that for non-EEA migrants, the report predicts a shortfall of 3,200 highly-skilled workers by 2030, at a cost to the UK FinTech sector of £361m.
Innovate Finance is proposing six policy principles as a foundation to develop a proportionate policy response and mitigate the impact of uncertainty on the FinTech sector, including the need to redefine the meaning of “highly-skilled” worker in today’s global jobs market.
Charlotte Crosswell, CEO of Innovate Finance said: “Access to talent is a perennial issue, and one which affects all sectors of our economy. This is not in light of Brexit, but Brexit shines a light on it and risks exacerbating the issue further.
“Without a flexible approach, the UK FinTech sector stands to lose its global pre-eminence with FinTech companies already facing challenges in recruiting appropriate skills and talent. However, the potential size of the loss has not yet come to pass and if managed correctly, may not materialise.
“It is up to policy-makers, industry and academia to propose sensible recommendations to mitigate the impact of these findings and to ensure sectors such as FinTech continue to be an engine for UK innovation and growth”.