Last week, the Chancellor gave UK fintech leaders a clear, positive vision for the future of our sector and its central place in the government’s economic growth mission.
The UK was already a major powerhouse in financial innovation, but I am pleased that the Government’s first ever Financial Services Growth and Competitiveness strategy will enhance this status further - underpinning an industry that will define the next decade of global growth.
The UK’s supportive regulatory environment, access to capital, diverse talent pool, and established financial services ecosystem make it a highly attractive destination for fintech investment, creating a landscape that champions innovation, collaboration and growth on a global scale.
The UK attracted $3.6 billion in fintech investment in 2024 and now accounts for over 11% of global investment in the fintech sector, and 48% of European fintech investment. Today’s plan for UK fintech growth paves the way for even more investment and Affirm will be at the forefront of that.
From open banking to Buy Now, Pay Later (BNPL), fintech is transforming nearly every aspect of financial services and its potential to help the UK government achieve inclusive growth for the sector and secure the UK’s competitiveness as an international financial centre is vast.
At Affirm, we want to empower businesses of all shapes and sizes, as well as consumers, to take advantage of transparent, responsible payment options. For example, our partners in the US report a 70% lift in average cart sizes and nearly 30% fewer abandoned carts than other BNPL products.
Our continued momentum in the UK, such as the recent expansion of our long-standing partnership with Shopify into the market, have the potential to be just as much of a growth enabler for the economy.
An added benefit of fintech’s flexible nature is that we’re able to create high-quality jobs in regions across the UK. Last week, I was in Westminster on Tuesday morning but started my week in Manchester and regularly split my time between the North West and London. Unleashing fintech means more opportunity for people across the nation.
As someone who has long advocated for consumer-centric solutions, I’ve seen firsthand the positive impact that fintech can have on people’s financial lives, opening up access to new products and services which provide more choice, convenience and efficiency for consumers.
Building on our learnings from the US and Canada, we know that when given a choice, consumers prefer to pay smaller amounts over a longer period of time to help them manage their finances more effectively.
The UK BNPL market has expanded rapidly over the past few years, with a clear appreciation and growing expectation among consumers for more transparent and responsible credit options.
As one of the largest e-commerce markets in the world, we saw significant opportunities in the UK to expand our mission of delivering honest financial products. By offering a wider range of payment options and no late fees, we’re addressing a gap in the market, providing consumers with a greater sense of control and certainty over their finances.
But to get it all right, we need to create the right conditions for growth, with a regulatory framework that is modern and fit for the future, aligning with the realities of today’s digital economy and evolving consumer habits. The Chancellor’s roundtable showed that the views of fintech leaders are being taken seriously. This is particularly important as new regulation is being developed and I am pleased to be engaging with the Treasury on this matter.
As the UK looks to strengthen financial services as one of the pillars for growth and competitiveness, now is the time for government and business to get together and collaborate. With the right mix of pro-consumer, pro-business regulation and a clear vision for the future, together we can ensure the UK’s fintech sector continues to go from strength to strength.
Ruth Spratt is UK country manager and board director at Affirm
