Despite Brexit, the UK's fintech firms remain bullish on their prospects, with half expecting revenues to double over the next 12 months and a third even anticipating an IPO within five years, according to a survey for Her Majesty's Treasury.
The poll of 245 fintech firms, conducted by Innovate Finance and EY for the Treasury, also shows that startups are still confident on getting funding, with half of all respondents expecting their next round to raise more than £2 million, and 35% anticipating more than £5 million.
Europe and North America are seen as the two most important regions for future expansion. While the survey is quiet on Brexit, some leading fintech players, including Transferwise founder Taavet Hinrikus, have raised concerns about the UK's EU exit's impact on the industry.
One challenge that is addressed in the survey, is the recruitment of skilled talent - an area which could also be hit by Brexit. Respondents feel that coding and software development would be the most difficult skills to find when recruiting, followed by product and sales skills.
Another key concern for the industry is the worry that customer adoption rates won’t be sufficient to build the size of the userbase. Half the respondents cite this as one of the biggest challenges facing them in 2017.
Stephen Barclay, economic secretary to the Treasury, says: "Fintech is saving millions of people time and money by transforming how we use financial services. The fintech census shows a thriving sector and we are committed to ensuring that the UK remains the best place in the world to start and grow a fintech business."