Fintech Founders Summer Survey 2020

The Fintech Founders – previously the Digital Finance Forum – member organisation runs an annual survey that looks at how founders and the fintechs feel about the UK’s regulatory and policy environment. Supported by Henham Strategy since 2018, the group’s annual survey is a particularly valuable stock of data that tracks changes in attitudes year on year. In 2020, in the middle of the pandemic, it provided an in-depth look at the experiences of UK fintech founders. The report highlighted three key themes: funding challenges, government support, and growth opportunities.

Many fintech leaders faced significant obstacles in accessing finance, particularly during the early months of the crisis. Founders expressed frustration at the lack of access to government-backed financial support schemes, such as the Coronavirus Business Interruption Loan Scheme (CBILS). Non-bank lenders felt particularly excluded, given their important role in the UK’s financial ecosystem.

Another key theme was the lack of tailored government support for the fintech sector. Although many industries received relief, fintechs felt underrepresented in government efforts. Founders voiced concerns about the exclusion of fintechs from initiatives like the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS), which could have provided crucial funding relief. They called for more active engagement between the government and fintech companies to develop policies that address the unique challenges they face, particularly regarding regulatory constraints and funding access.

Despite the obstacles, fintech leaders also saw the crisis as an opportunity to accelerate digital adoption. With more businesses and consumers embracing digital finance solutions during lockdowns, fintechs found a growing market for their services. Many saw this shift as a pivotal moment for the industry, positioning fintechs as a key driver in the economic recovery, particularly for small and medium-sized enterprises (SMEs) that needed digital solutions to survive.

The report underscored the resilience and adaptability of the UK fintech sector, but also called for better collaboration between the government and fintech leaders to foster long-term growth and innovation.