Greater Manchester is rapidly emerging as the fastest-growing fintech hub in the UK, contributing over £1 billion to the national economy. On top of this, Manchester has also been recognised as the most AI-ready city in the UK according to the SAS AI Cities 2024 Index. The report highlights that AI already contributes £3.7 billion annually to the UK economy, with the potential to grow to a staggering £7.5m by 2035.
For the first time, Manchester topped the list of AI-ready cities, boasting the highest concentration of AI companies outside of London and the largest number of tech events—two key criteria in the SAS report. Salford also leapt 60 places to come third, bolstered by over £100 million in funding from Innovate UK. Leeds and Liverpool also feature on the list, ranking fourth and sixth, further underscoring the North West's growing influence in the tech sector.
A report by Whitecap Consulting (2023) found that Greater Manchester’s fintech sector employs 10,000 people, a significant figure that underscores the city’s rising status. While London remains the UK’s fintech leader with over 1,600 companies—outpacing even New York and Singapore - Manchester’s ecosystem is thriving, driven by a dynamic mix of innovative startups, scaling businesses, and established financial institutions, supported by a network of agencies and tech consultancies. In addition to this, it has world-renowned universities and a large graduate population to drive the tech talent pathway.
Fintech companies in Greater Manchester include Starling Bank, AJ Bell, Adyen, Klarna, OakNorth, Financielle, Zuto, BankiFi, Total Processing, thinkmoney, AccessPay, Collctiv, Hydr, Ryft and Nivo - just to name a few.
The COVID-19 pandemic acted as a catalyst for the fintech sector, accelerating the shift to online shopping and reducing the use of cash as many physical stores stopped accepting it. The rise of mobile payments has further transformed consumer behaviour and financial transactions.
However, the question remains: can Manchester grow to compete with global fintech giants like New York, Singapore, Hong Kong, Dubai or San Francisco? This is a complex issue with numerous factors to consider.
One of the key topics at our upcoming Fintech Conference on 19 September will be the role of AI in elevating Manchester’s fintech sector to a global level. Our panels at the conference will delve into various aspects of this transformation, and include regulation, collaboration, the investment landscape and challenges and opportunities.
Katie Gallagher, managing director at Manchester Digital, said: “The regional fintech ecosystem has seen tremendous growth over the past 10 years, and with the recent rapid innovation around AI and machine learning within the industry, it looks set to continue this growth trajectory.
“As the industry's representative body, Manchester Digital collaborates closely with the fintech sector while simultaneously engaging in policy advocacy with MPs and government. We’re looking forward to bringing together senior leaders from the fintech industry and providing a platform to discuss the current challenges within the industry as well as its recent successes.”
AI has numerous applications which will propel the fintech industry and create many benefits for consumers, including:
- Generative AI chatbots
- Fraud detection
- Credit scoring
- Predictive analysis
- Personalization
- Risk management and mitigation
- Regulatory compliance
- Robo-advisors
- Productivity-enhancing AI for administrative tasks
- Auditing and reporting
On top of this there are many benefits to using AI within the fintech industry. These include: accelerated decision-making, both internally and customer-facing: enhanced accuracy in lending and financial decisions: reduced bias: continuous learning: improved customer service and better interaction across services and technology.
What Manchester needs to compete globally
The future of fintech in Manchester is promising. The city’s strong financial services sector, supportive business environment and access to a talented workforce positions it well to become a global leader in fintech innovation, particularly with the growing integration of AI.
However, to rival global cities, the Manchester tech economy must address several key areas:
- Increased venture capital investment to support the startup ecosystem
- Enhanced collaboration across sectors, including universities, private enterprises, and government bodies
- Development of talent pathways to equip graduates with the necessary AI and fintech skills
- Strengthened connections with nearby cities like Liverpool and Leeds, leveraging the M62 corridor
- Close collaboration with government on emerging AI regulations
- Cross-industry partnerships to combat rising AI-based cyber threats
Our Fintech Conference will bring together the leading fintech businesses in the North West to explore these issues.
Book your place for the 2024 Fintech Conference. Tickets are free for Manchester Digital members with paid tickets available for non-members.
The event is supported by sponsors: AND Digital, CyberLab, Just After Midnight and Bruntwood SciTech.
