Although London remains the UK’s largest fintech hub, the development of the sector outside of the capital is impossible to ignore. One region enjoying significant success is Norfolk, where the fintech sector could be worth north of £100million by 2027; according to new research commissioned by Tech East, the network of tech firms in the East of England.
The Norfolk FinTech Report 2024, commissioned by Tech East and produced by Whitecap Consulting, forecasts that Norfolk’s fintech sector eventually be worth £100million, with the number of fintech firms doubling within the next three years – creating more than 600 new roles in the region.
Norfolk is currently home to 24 fintech firms which have collectively raised a total of £49million in investment, and are part of a wider East of England cluster estimated at over 80 fintech firms.
The insurtech sector also appears to be on the up in the region, with the insurance sector employing over 7,500 people; making it the most concentrated insurance workforce outside of London. The sector also houses a financial services industry that generates over £1billion – more than 20 per cent of the city’s gross value added (GVA) and is home to the second highest proportion of InsurTech firms of any English region (once again only behind the capital).
Ben Luckett, managing director of venture capital at Aviva, explains: “With a robust support ecosystem and close proximity to primary investor hubs such as London and Cambridge, it’s clear that Norwich offers a fantastic environment for burgeoning insurtech ventures.
“Couple this with a vibrant academic community and access to great early-stage career support including apprenticeship schemes in areas such as software development and data analysis, and you have a growing pipeline of skilled professionals and innovative thinkers ready and waiting to help Norwich join the likes of established clusters like Cambridge.”
Norfolk’s thriving fintech sector
Despite the relatively small geographic size of Norfolk in comparison to some of its bigger counterparts, the fintech sector in the region indicates that it is performing higher than average on other key notable points, such as sustainability, and diversity.
Norfolk was highlighted as having a high proportion of female fintech founders (17 per cent), which although in line with the national average of 16 per cent, is higher than any other fintech region in England, outside London.
The report also highlights a new wider analysis of the Norfolk economy by mnAi which identifies 342 SMEs with relevance to fintech, with net assets of just over £250million. Just over half (51 per cent) of this sector is operating with ultra-low emissions, compared to the UK average of 38 per cent.
Lisa Perkins, chair of Tech East, commented: “The findings of the report are very positive. Despite challenges with access to funding and relatively small financial investment, the Norfolk fintech ecosystem is flourishing and this new report highlights some immense potential.
“The region is already a leading insurtech hub, also distinguishing itself in sustainability and diversity within the fintech realm and there has been a lot of appetite and support to ensure this growth continues.
“However, to truly unlock this potential and pave the way for sustained growth and innovation in the region, we must build new relationships and partnerships that expand the investment options for innovative new businesses, while also looking to foster a collaborative ecosystem that supports both established players and emerging startups alike.”
Supporting local fintech talent
The report also highlights the increasing amount of support available to the fintech sector in the region. The inaugural Norwich FinTech Hackathon held in March 2024, hosted by Aviva and City College Norwich, and the University of East Anglia’s ‘FinTech Lab’ and post-graduate fintech masters degree are just some of the initiatives supporting the growth of fintech in the region.
Julian Wells, director and fintech lead at Whitecap Consulting, said: “Throughout this project, we have experienced the collective desire of a wide range of stakeholders across the region to work together to develop the fintech sector. Norfolk is the 10th region of the UK that Whitecap has analysed in this way over recent years, and what we have found in this region is an emerging and distinctive FinTech ecosystem.
“It is also the first time that payments have not been the leading sub-sector in a region. The proportion of female fintech founders is the highest we have observed to date, giving Norfolk a crown that every region would crave. There is strong potential for economic growth through the fintech sector in the region, and collaboration on a regional and national level can help drive this.”
