FinTech investment soars as Cardiff cements role as industry hub
THE FINANCIAL and related professional services industry in Wales continues to go from strength to strength, contributing significantly to jobs, innovation and economic output across the country, according to new data from TheCityUK.
In its latest Enabling Growth Across the UK 2025 report, the industry body reveals that 63,000 people were employed in the sector across Wales in 2023 – the most recent year for which data is available. The sector contributed £6.1 billion in gross value added (GVA), representing 8.2% of Wales’s total economic output.
FinTech growth fuels optimism
Wales’s FinTech sector is emerging as a key driver of growth, with Cardiff positioned as a leading hub for financial technology. Investment in Welsh FinTech rose sharply from £13 million in 2022 to £70 million in 2023 – more than a five-fold increase. The industry now contributes around £1.6 billion in GVA to the Welsh economy.
New startups continue to thrive in the capital, supported by strong infrastructure, local talent and growing investor confidence.
Cardiff and Swansea lead the way
South Wales remains the engine room of the nation’s financial services, with Cardiff and Swansea home to over half of the total workforce – 34,340 people. In both cities, the sector accounts for nearly a fifth of total GVA.
Cardiff in particular has developed a strong insurance sector, which accounts for more than a third of the city’s financial services employment. Legal services also play a significant role, employing 16% of those working in the industry.
Education and skills pipeline
Cardiff Business School and other academic institutions continue to provide a strong pipeline of skilled professionals, supporting the industry’s growth and fostering collaboration between employers and educators.
Tom Bray, TheCityUK Chair for Wales, said:
“The Welsh financial and related professional services industry is thriving – creating high-value employment, attracting international investment and driving new opportunities for growth.
“With strong foundations across Cardiff, Swansea and Newport, and a burgeoning FinTech industry, there is a real opportunity to scale the industry’s success beyond these hubs. Continued investment in talent and infrastructure, alongside greater alignment of devolved and UK-wide strategies, will be essential to unlocking the sector’s full potential.”
Policy recommendations
The report outlines several policy recommendations to help sustain momentum and ensure the benefits are felt across all parts of Wales. These include:
- Ensuring the UK Government’s new Strategic Investment Opportunities Unit partners closely with the private sector
- Delivering improved skills planning and training through collaboration with Welsh education providers
- Strengthening public-private partnerships to boost investment
- Improving infrastructure and digital connectivity to support future growth
TheCityUK is calling on policymakers at all levels to back the industry with targeted action to ensure continued success across the Welsh economy.
