Banking on Newcastle: The Region's Fintech Boom

When people think of the country's financial centre, they think of London. But a growing financial technology sector is putting the North East on the map, with a cluster of innovative companies, from app-based banks to software giants, building a thriving fintech industry along a corridor from Newcastle to Durham.

A Growing Cluster.

The North East has developed a growing financial services and financial technology sector, building on the region's long heritage in banking, insurance and professional services. A corridor of innovation has emerged running from Newcastle to Durham, home to a cluster of fintech companies.

This sector has been forecast to contribute hundreds of millions of pounds to the regional economy and to support thousands of jobs, marking it out as a significant and growing part of the regional economy. It is an area of real opportunity for the region.

Home to Pioneers.

The region's fintech sector is anchored by some notable pioneers. Among them is an app-based bank, born in the region, that was one of the country's first digital banks, and which recently reinforced its commitment to the area by moving its headquarters to a landmark building in the city.

The region is also home to one of the country's largest listed technology companies, a maker of business software, as well as companies that power the technology behind a number of the country's digital banks. These pioneers anchor the region's fintech credentials.

The Newcastle to Durham Corridor.

The region's fintech sector is concentrated along a corridor running from Newcastle to Durham, combining the strengths of the region's financial services heritage with its growing technology sector. This combination of traditional financial expertise and technological innovation creates fertile ground for fintech to flourish.

The region has developed expertise in areas such as payments, lending, savings, mortgages and the technologies that combat fraud. This blend of established strength and emerging innovation is the foundation of the sector.

Competing with London.

While London remains the country's dominant financial centre, the North East and the wider North have developed real competitive advantages in fintech. A skilled workforce, established financial services expertise, and significantly lower operating costs than London make the region an attractive location for both established firms and new entrants.

These advantages have attracted investment and jobs, and have led some firms based elsewhere to establish a presence in the region. The region offers a compelling alternative to the high costs of the capital.

A Magnet for Talent.

The sector's growth depends on attracting and developing skilled workers, and here the region's universities and its quality of life are real assets. The region produces a steady supply of skilled graduates, while its lower living costs and quality of life can attract talent from elsewhere.

The challenge, as in other parts of the technology sector, is to ensure a steady supply of the digital skills the industry needs. Developing this talent pipeline is central to the sector's continued growth.

Support and Collaboration.

The region's fintech sector benefits from a supportive ecosystem, including efforts to promote the sector, attract investment and foster collaboration. Initiatives to bring together the region's fintech companies, support new entrants and champion the sector have helped to build a sense of community and momentum.

This collaborative approach, with companies, universities and support organisations working together, has been a real strength. Strengthening this ecosystem is central to the sector's future.

Why It Matters.

The growth of the fintech sector matters for the region because it creates skilled, well-paid jobs, diversifies the economy, and positions the region in a high-value, growing industry. These are exactly the kind of high-value jobs and industries that the region needs to build a more prosperous economy.

The sector also helps to change perceptions of the region, showcasing it as a place of innovation and opportunity. For a region seeking to build a modern, high-value economy, fintech is a valuable and growing asset.

The Future of Finance.

The North East's growing fintech sector, anchored by pioneering companies and concentrated along a corridor from Newcastle to Durham, is putting the region on the map as a centre of financial innovation. Built on the region's financial heritage and its growing technology sector, the sector offers skilled jobs and real opportunity.

For a region seeking to diversify and grow its economy, the rise of fintech is a welcome and significant development. As the region builds its reputation in the future of finance, it is showing that financial innovation need not be confined to London.

Changing the Story.

The rise of the region's fintech sector is part of a wider effort to change the story that is told about the North East, both by others and by the region itself. For too long, the dominant narrative about the region has been one of industrial decline and economic disadvantage, a narrative that, while reflecting real challenges, has often overshadowed the region's genuine strengths and successes.

The growth of a thriving fintech sector, with innovative companies competing on the national and international stage, helps to tell a different and more hopeful story, of a region of innovation, ambition and opportunity. This matters because the stories we tell about a place shape how it is perceived, by potential investors, by businesses considering locating there, by talented people deciding where to build their careers, and by the region's own people.

A region seen as a place of innovation and opportunity is more likely to attract the investment, businesses and talent that drive economic success, while one seen only through the lens of decline may struggle to do so. The success of the region's fintech sector, alongside its strengths in other growing industries, helps to build a more positive and accurate picture of the region as a dynamic and forward-looking place.

This is not about ignoring the region's real challenges, which remain significant, but about ensuring that its strengths and successes are also recognised and built upon. For the region's own people, too, seeing home-grown companies succeed on the national and international stage can be a source of pride and confidence, countering the negative narratives that have sometimes taken hold.

Changing the story, by showcasing the region's genuine strengths and successes, is an important part of building a more prosperous and confident future. The rise of fintech is a significant part of that more hopeful story.

Share your thoughts.

The North East has a growing fintech sector along a Newcastle-to-Durham corridor, anchored by app-based banks and software companies.

Could the North East become a major centre for fintech?