Why the UK's top-growing Fintech is a Welsh Fintech - Cardiff ...
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The CCR Fintech Sector Edition | May 2021
The CCR Fintech Sector:
Why the UK’s top-growing
Fintech is a Welsh Fintech
Fintech. A Priority Sector. And
Potential World-Leader?
Two Fintech Journeys One “Fintech
Wales” Vision
A Fintech Strategy to Build a Cluster
of Global Repute
Collaboration: a Critical Factor for
Fintech Across CCR
The Shape of Fintech Funding for
Start-Ups in CCR
Why the UK’s top-growing Fintech is
a Welsh Fintech
The World Standard for
Cryptocurrency, Created in Cardiff
FOREWORD
BY SUZANNE CHESTERTON
The Fintechs of CCR - winning the awards,
gaining the investment and carving a
global market share ...
The last few months have witnessed a series of The next step is to put all of this into action, not just
astonishing developments in the Fintech cluster of by making marquee investments in Starling Bank and
Cardiff Capital Region. The first quarter of 2021 saw Monzo Bank, but by supporting start-ups such as
Sarah Williams-Gardener the year-old start-up Yoello voted “Top Growing Fintech ShipShape VC and Stock Up - as well as providing a
CEO Fintech Wales Company in the UK” at the Tech Nation’s Rising Stars long-term home for globally-established scale-ups
Awards, while the emerging worldwide influence of such as the truly remarkable CoinCover, who have
Delio was recognised when this pioneering five-year-old become the world standard for cryptocurrency in
Our mission is more than ‘just’ making Wales enterprise was selected for the prestigious Accenture- the three short years since they opened their doors
a go-to location for Fintech businesses. It’s about sponsored Fintech Innovation Lab in New York. And as in our capital city.
listening to the hopes, dreams and ambitions I write, the Cardiff-headquartered Sonovate has been
named by the UK government’s Digital Economy Council Working alongside all of this, FinTech Wales is becoming
of our members, removing any factors that as potentially the first $1bn fintech unicorn in Wales … an ever-stronger community, pulling together the myriad
inhibit the success of both the innovators threads that make up this highly-varied and complex
Something special seems to be happening in this fast- industry - with a newly-established FinTech Wales
and the enterprises. growing sector - and little wonder that the recently- Foundry providing the platform for greater knowledge-
published UK Government-sponsored Kalifa Report share and collaboration; and an even more compelling
identified our region as a fintech leader in the making reason to believe that our region really can be the
- building on a sector founded around insurers such home for the future greats of fintech.
as Admiral and aggregators such as Confused.com
and GoCompare and a diverse range of fast-emerging Enjoy discovering more!
enterprises such as ActiveQuote and Wealthify.
As the following pages testify, all the ingredients for
future fintech success are here in South East Wales:
Suzanne Chesterton
from the cybersecurity centre of excellence that’s Marketing & Communications Lead
critical for providing a ‘safe’ environment to incubate and
accelerate, to the proven collaboration between academia
and industry that’s so crucial for both innovation and
the provision of skills - and the commitment from the
CCR City Deal itself to support Fintech as one of our
key priority sectors, with a focus on building a world-
class financial services technology ecosystem that
helps nurture a prosperous local economy as well as
fuelling a growing national and international ambition.
www.cardiffcapitalregion.wales The CCR Fintech Sector Edition 3
Fintech. One of the top Fintech regions
in the UK, contributing up to £2
A valuable – and fast-growing – employer. The Centre for Financial and Professional Services,
University of South Wales, Cardiff University Data
A Priority Sector. billion to the CCR economy” More than 5,000 people in Wales are currently
employed in a role that directly generates revenue in
Innovation Accelerator and National Software
Academy, the CCR Graduate Scheme, the University
And Potential Set to flourish from a firm foundation.
Fintech – and a wider 15,700 employee population
working for financial service enterprises that are
of South Wales CEMET, the Welsh Contact Centre
Forum Graduate Scheme, and Cardiff Met and the
World-Leader?
adopting fintech to deliver their product or service. Open University funded apprenticeships
There’s an established Fintech ecosystem here Some of those skills are the ‘usual suspects’ – such
in the CCR, clustered around Cardiff and the as Java, which is very much a stalwart of software A global voice in Fintech.
Newport-Pontypool corridor – with the potential development – but the skills matrix also shows
When Cardiff Capital Region made to become renowned globally for our fintech continual and growing demand for everything from FinTech Wales was established in 2019 to raise
‘Fintech’ a Priority Sector, it did sector. data storage and analysis through to cloud-based the awareness of the thriving fintech ecosystem in
more than acknowledge the fact architectures and more modern coding languages. Wales: focusing on having the right skills in place
that financial technology drives This cluster is already home to 3 of Europe’s top and supporting this vibrant community to start-up,
the way Wales and the world saves,
5 online insurance aggregators and if we look at A 15,700 employee population, scale and grow. CCR works closely with Fintech
the companies who deliver financial products Wales to support their vision of establishing Wales
pays, invests, borrows, budgets and with wide-ranging skillsets”
and services through technology – be it a as a rapidly emerging pillar of the global Fintech
transfers its money. business based primarily around fintech-enabled The lessons from other clusters is that here in the Economy, investing in their activities to engage with
financial services (e.g. an aggregator like Go Cardiff Capital Region, we will need to build our own both Fintech entrepreneurs and innovators looking
It recognised that the UK’s position as a global Compare) or, an FS company that adopts Fintech ‘native’ talent pipeline of skills to fulfil the growing to launch their business in Wales, as well as nurturing
Fintech leader – and South East Wales’ recent as a part of its offering (e.g. an insurer such demand, as well as attracting more skillsets from and supporting those companies already here in the
development as home to a growing fintech as Admiral) – it’s clear that we have a defined outside the region, to meet our short, mid and long- region.
ecosystem – has created a potential catalyst for cluster of fintech communities, business models, term needs – providing a potentially valuable win-win
the region to establish a truly world-class cluster, organisations, best practices, products, services collaboration with FE and HE colleges across the Supporting this vibrant community to
serving one of the highest-value sectors on the and relevant technologies that stretch much region.
start-up, scale and grow, establishing
planet. further and wider than ‘just’ insurtech.
An innovative partner with business Wales as a rapidly emerging pillar of
Over the next few weeks we’ll be looking to Being clustered brings potential and academia. the global Fintech Economy”
shine a light on the fintech sector here in CCR,
to build a fintech ecosystem of
uncovering key insights into the companies, Win-win collaboration is critical if Wales is to build Over the next few weeks we will be running a series of
communities, partnerships and personalities global repute” resilience, build back better, level up, scale up and insights into Fintech in Wales – exploring the emerging
that make it one of one the most fascinating achieve inclusive growth. Both younger and more vision, strategy and roadmap for fintech in the region,
industries in our region. In this our first article of There are some high-profile examples of Welsh established Fintech’s have embraced the importance detailing the motivation and performance of the
the series, we examine the conditions for success Government support for Fintech and Fintech- of partnering wherever possible with other businesses different types of companies who make up the cluster
that fintech in our region currently enjoys – and related companies in the region – including the and academic institutions that can add value. – and finding out what core actions are in place to
look at the benefits they can bring … £140k investment in Optimum Credit to expand make tangible significant progress, by showcasing the
and create 23 new jobs and LDMS receiving Win-win collaboration is critical if leadership and innovation that pervades the sector
Economically important with a high-performing £651,000 to support its Cardiff HQ and create and looking at what’s being done to attract, retain and
Wales is to build resilience and build
GVA. up to 80 jobs. Of the FinTech companies that are develop the talent needed to power this cluster.
located, or at least have a presence in the region back better”
The latest data from Whitecap and the CCR it’s estimated that across all their operations Each article will explore a different dimension of the
shows that, outside London, the Cardiff Capital £700m has already been raised with private This cooperation can range from complimentary sector – and each will make a call for
Region Fintech cluster is amongst the top capital investment. Those companies include offerings that evolve a product or service, to sharing the views of all stakeholders
Fintech hotspots in the UK – with the highest Active Quote, ANNA Money, Lip-sync, Coin of platforms and customer bases – and even the involved. That platform for
density of Fintech activity shown by GVA per cover, Counting Up, Currency Cloud, Delio, ‘omnichannel-on-steroids’ approach adopted by your voice starts in our
capita and ratio of people employed in the sector. Disberse, Hodge, Myinpad, Pension the Pennies, online banks such as Monzo and Starling, where next feature, where we
Within the Cardiff Capital Region itself, Fintech Sapiens (UK) Insurance Software Solutions, third parties can offer their services as part of the spotlight the work being
employees deliver in excess of £10k extra GVA Senseforth, Sonovate, W2 Global Data Solutions, customer experience, building a more integrated way done by FinTech Wales
over and above the regional average. The GVA Twist2Pay, Wealthify and Yoello – as well as the of managing finances, insurance, energy, etc. Admiral, to help shape and drive
of specific Fintech activity is estimated at over two oft-quoted ‘marquee investments’ in Monzo GoCompare.com, Confused.com and CurrencyCloud the sector here in
£500m per annum, or nearly £2bn if we factor in Bank and Starling Bank. all rank highly as intelligent exploiters of a partnered Cardiff Capital Region.
Financial Services companies who are adopting approach – and other means of partnering with
Fintech within their business activities. academia for research and skills supply are also being
embraced, with dozens of Fintech’s engaging with
4 Issue 5 | Cardiff Capital Region Update www.cardiffcapitalregion.wales www.cardiffcapitalregion.wales The CCR Fintech Sector Edition 5
– and why it’s a uniquely rewarding and fascinating career, even though it’s only two hours away from Wales, I still
welcoming to everyone. That’s the way we’ll open up the found myself smiling broadly every time I drove ‘home’
careers pathways into our sector – and until we do that, westwards over the bridge. My professional life has seen
we’ll limit what we can truly achieve.” me work as UK Government Affairs Director for IBM
and become a proud founding member of the challenger
We need to make fintech a start-up Starling Bank, so I have an in-depth and very
destination employer of choice informed perspective of what the Fintech sector. For
me, our mission is more than ‘just’ making Wales a go-to
for all potential talent”
location for Fintech businesses. It’s about listening to the
hopes, dreams and ambitions of our members, removing
Nurturing a sustainable skills base for the region is a any factors that inhibit the success of both the innovators
key pillar of the Fintech Wales mission and Richard and the enterprises. We really are here for the small, the
Two Fintech Becoming Fintech Envoy for
Wales to give everyone the best
is encouraged by collaborations already in place,
with partners and courses that include; University
medium and the large.”
This has brought together two
Journeys One
of South Wales CEMET, Cardiff University National
chance of success” Software Academy, and the Data Innovation of my passions in life: Wales and
“Fintech Wales”
Accelerator, Welsh Contact Centre Forum’s 2 year
Innovation”
“Setting up Fintech Wales was the logical next step” Graduate programmes in Financial Services and Data
says Richard “to bring together entrepreneurs, small, Science – both of which have a number of high profile
Vision medium and large enterprises, tech suppliers, higher
and further education, schools, the public sector
participating employers. “We’re currently working on a series of strategies and
actions to stimulate interest in the sector – and we’ve been
– and anyone else who plays a part in enabling or “But we really can’t be complacent and we need to engage conscious to build an ecosystem around both Fintech
Fintech Wales was established in 2019 supporting this sector.” strongly with the potential and emerging talent in Wales, ‘Family’ and Fintech ‘Friends’, bringing together support
to raise awareness of the thriving making our sector a destination employer of choice.” from organisations as diverse as world-class universities
Having divested Wealthify and retained a and professional service firms specialising in critical areas
fintech ecosystem in Wales, focusing NEDship of ActiveQuote, what motivated Pathways into the industry is a core part of the such as regulatory law, trademarking, tax and many
on helping get the right skills and Richard to take the lead in shaping Fintech strategy Fintech Wales are currently shaping. That more. From our networking we know the importance of
funding in place and supporting this in Wales? strategy will also be looking at how to; support giving every start-up and scale-up the support they need,
vibrant community to start-up, scale businesses seeking access to funding, provide the moment they need it. That’s why mentoring and
and grow. “Part of it was the desire to ‘give something back’. I networking and mentoring support to assist with celebration programmes – or simply being there to listen
came to Cardiff in the early 80’s to study computer growth ambition, create centralised working spaces and advise – is so important. ”
With a mission to empower fintech and financial systems and networks, got caught up in the passion to foster innovation and collaborative working, and
service companies here in Wales – and make of the place, and stayed. We all enjoy a wonderful amplify the brilliant success stories we have in our The bigger picture couldn’t be more
Welsh Fintech a pillar of the global economy work/life balance here in the region – it’s part of our midst to help build a sector of global repute.
encouraging”
by nurturing talent while connecting and ‘sell’ a place that offers opportunity and the chance to
enabling stakeholders across the sector – work with some remarkable people.” Our constitution was created to “The bigger picture couldn’t be more encouraging. Along
this independent membership association is with Richard and Louise O’Shea of Confused, I was
championing one of CCR’s key priority sectors, include and deliver actions for fortunate to be heavily involved in the Kalifa Review –
I wanted to give something back
so we spoke to Founder and Chair Richard Theo everyone.” Cardiff has been recognised in the top 10 UK emerging
and CEO Sarah Williams-Gardener, to explore and push the sector forward” Fintech clusters. By collaborating it’s clear that we have
what lies ahead and find out more about their Richard is clear that the foundations are now in every opportunity to make Wales and the rest of the UK
own personal journey in this high-value, fast- Any frustrations? place to maximise the potential of this high-value a more attractive location for Fintech’s to start and grow.
growing sector… cluster. “We were careful to create a constitution that The Kalifa report has suggested the creation of a ‘scalebox’
“The frustrations are common to all parts of the represents small, medium and large enterprises, with that provides the additional financial and technological
“I was invited to be the fintech envoy for Wales by the UK”, notes Richard. “When my children return from an advisory panel that revolves on a regular basis, support that Fintech’s need to realise their full potential,
UK Government in 2018 as part of their strategy to school after a careers discussion, I ask them what appointing Directors with clear remits to deliver. this combines with the listing recommendations in the Hill
make the UK the best place in the world to start and occupations were covered. And ‘Tech’, or more It means Fintech Wales will always be here for report reaffirms the UK’s attractiveness and continued
grow a fintech ”, explains Richard, who co-founded specifically, ‘enabling tech through data science’ is everyone in fintech, taking the broadest of views and support for this fast growing innovative sector.
both Wealthify and ActiveQuote in the Cardiff area. never even mentioned. We remain obsessed with the continually actioning what needs to be done for the
old professions of law, accountancy and the others, to whole sector.” A big ‘thank you’ to Richard and Sarah for sharing
“Here in Wales that meant advising on how we the detriment of the new and the future. In the States, their journey in Fintech so far. Look out for our series
could best power up a potential cluster that already tech is ‘cool’ and that’s why they have the top-10 For Sarah, becoming CEO of Fintech Wales “has brought of articles and digital discussions that follow – and
had strong market leaders such as Admiral and tech colleges in the world. We need to really connect together two of my passions my life: Wales and Innovation. discover the full story of what this fascinating fast-
GoCompare, as well as a burgeoning host of start-ups, with students from their school days onwards, telling Like many people my own journey took me to London but, growing sector is bringing to Wales.
in place – to give everyone the best chance of success.” the story of how tech is such a critical force for good
6 The CCR Fintech Sector Edition www.cardiffcapitalregion.wales www.cardiffcapitalregion.wales The CCR Fintech Sector Edition 7
Encouragingly, the Fintech Wales thinking to ActiveQuote and Cardiff University – and pioneering informed the emerging Fintech Wales strategy
date mirrors much of what was recommended work being done by Shipshape VC to match start-ups to date. How that evolves will be a construct of
in last month’s long-awaited Kalifa Review of with investors based on semantic algorithms – shows government, private investment – and the courage
UK Fintech Strategy. The 106-page report, how this spirit of partnership is already driving market and collaboration of fintechs and other stakeholders
commissioned by HM Treasury and authored by developments in our region. here in the CCR ecosystem.
former Worldpay CEO Ron Kalifa OBE, put into
context the opportunity of a sector that globally We’ll be featuring the views of some of those
is worth around £110 billion and is expected to Greater Investment: Though the UK is already among companies and their collaborators in the
more than triple to £380 billion by the end of the the top three destinations for fintech investment forthcoming weeks, discovering the opportunities
decade. globally, its numbers pale in comparison to that of and challenges that lie ahead for fintech in the CCR…
the US and China. Kalifa suggests unlocking capital
The UK has around a 10% market share of to create a £1bn ‘Growth Fund’, enhancing sector
that figure – but the true significance to Wales visibility with a global family of indices and expanding
and the CCR may be even greater than those
numbers, with Kalifa maintaining that “Fintech
R&D tax credits – and likewise, Sarah Williams-
Gardener, CEO of Fintech Wales, views investment Fintech is a
is more than a niche sector. It’s a tech-enabled
revolution that can bring increased trade and
and access to funding as central to any strategy:
revolution rather
jobs – as well as greater inclusion and recovery.” “The fintech industry will eagerly await HMT’s than just a sector”
Those sentiments clearly chime with the CCR response to “The Kalifa Review” as additional
ambitions of levelling-up, scaling up, building support and a commitment will be required to r
back better and developing economic clusters – ealise the implementation of the review’s
and the ‘next steps’ outlined by Kalifa are already recommendations ensuring the UK maintains
being reflected in the Fintech Wales’ strategy and grows its world standing.”
A Fintech Strategy too, including:
The output of the future Fintech strategy work
to Build a Cluster Skilling-Up: Fintech Wales has placed an
absolute priority on building a talent pipeline
that is currently taking place will help shape the
interventions that are critical for evolving the sector
of Global Repute through close relationships with schools, FE
and HE, as well as identifying opportunities
for retraining and upskilling. The CCR cluster
and with the CCR Levelling-up Investment prospectus
– published March 15 2021- clearly headlining the
intention to formulate future investment proposals in
already offers pathways into the industry this sector, the time is right to seize the opportunities
Fintech Wales is already on a journey through Cardiff University’s National Software that are emerging.
to build a Fintech ecosystem of global Academy and Data Science programmes
standing – with an initial £250,000 and their 1-year MSc Fintech, with specialist he Kalifa Review shows the scale
T
award from CCR funding a preliminary collaborations also involving the Cardiff Fintech of the opportunity”
Research Group and the Data Innovation
assessment of the region’s potential to
Accelerator. Sina Yamani, Founder & CEO of “Fintech is about change” stresses Kalifa “it’s about
become an established fintech player Yoello, is a graduate of Cardiff University and is new firms and established ones, large companies and
on the world stage. just one example of how skilling and academic small, with roles for both the public and private sector.
collaboration can drive fintech in the Cardiff At present, these elements and their well-intentioned
The commitment is there, collaborations are Capital Region. supporters are not pulling together in a single vision.”
in place and an ecosystem is beginning to It’s a scenario that Sarah Williams-Gardener is keen to
emerge: with Fintech Wales shaping a strategy address in the strategy of Fintech Wales: “The Kalifa
to include building talent pipelines, access to Clusters, Connectivity & Collaboration: Kalifa Review is a promising encapsulation of the progress and
funding and establishing a Foundry – all essential is committed to nurturing high growth potential potential of fintech here in our region. It reveals that by
pillars to support a platform that will give voice, clusters outside London – and accelerating truly collaborating across industries and geographies,
confidence and momentum to the start-up, the development of these clusters through fintech has all the ingredients to remain a highly
scaling and large enterprises that make up this further investment and a coordinated strategy. promising sector for Wales and the UK – one in which
fast-growing and high-value sector in South East The vision is one where the term ‘fintech’ will we can continue to compete on a global scale and reap
Wales. become gradually redundant as collaboration the benefits for local economies and beyond.”
between large financial services organisations
Bringing increased trade and jobs and enabling technology companies become an It’s clear that the Cardiff Capital Region has many of
integral part of doing business – and in an even the attributes noted by Kalifa to become a key part
– as well as greater inclusion and
wider context showing how tech can transform of the fintech revolution. And this has undoubtedly
recovery.” any organisation. The collaboration between
8 The CCR Fintech Sector Edition www.cardiffcapitalregion.wales www.cardiffcapitalregion.wales The CCR Fintech Sector Edition 9
Innovation Accelerator working with enterprises To help achieve this, the Cardiff School of Technologies
such as W2 Global; and career pathways into the are embarking on a project involving 20 local schools,
industry already established through the National aimed at engaging young female students to interact
Software Academy, Data Science Academy, School with STEM subjects through innovations such as
of Computer Science and Informatics (the alter a ‘Read and Code’ book that Dr Carroll actually
mater of Yoello’s Sina Yamani) and specialist developed with her three young children. Fabulous
courses that include a BSc in Financial Maths and to see such amazing levels of creativity being applied
a one-year MSc in Fintech. to the challenge of inspiring young minds to get
interested in coding. She’s convinced that the success
Cardiff University’s Fintech Research Group is well of future collaborations will be dictated by how well
on its way to becoming an internationally recognised we connect with future talent of all genders – and that
institute – a leader in interdisciplinary Fintech the CCR can play a valuable part in developing tech
research – engaging in innovative industrially-relevant that’s good for all.
collaboration. And it’s by no means on its own. Cardiff
Metropolitan University is blazing its own trail as a A meeting of minds delivering
fintech R&D partner. Dr. Imtiaz Khan, Reader in Data
Science at Cardiff Met’s School of Technologies works fintech that’s good for all”
in a team that specialises in provenance, blockchain,
data modelling, data interoperability, interactive data The quality of collaborative links already in place
visualisation, virtualisation and machine learning – across CCR is not lost on Sarah Williams-Gardener,
and sees clear potential for fintech in our region to CEO of Fintech Wales:
Collaboration:
universities leading the way in working closely stand for something new and much-needed, by
with fintechs of all sizes, inspiring innovations being amongst the first wave of fintechs to deliver We have already evidenced how good we
that will deliver a collaboratively-created a democratic and fair financial system that’s can be through many meeting of minds –
a Critical Factor competitive edge. progressive and inclusive. and the inspirational work already being
delivered through partnerships with
for Fintech
Delivering a collaboratively- Standing for something new, Cardiff University and Cardiff Met gives
created competitive edge” progressive and much-needed” us a glimpse of what is possible here in
Across CCR Cardiff University has shown real vision in
quickly understanding fintech’s wave of creative
This potential for fintech to be a force for good is a
theme taken up with alacrity by Dr Khan’s colleague,
our fintech cluster. The same spirit of
collaboration and innovation is driving some
destruction, how it will transform the finance Dr. Sia Chow Siing, Senior Lecturer in Data Science
great work at the University of South Wales
Following our last article which landscape – and how it is already impacting at Cardiff School of Technologies. In conversations too – where I’ve witnessed their team
featured the fintech strategy that’s on our economy: with phenomena such as with us, Dr Siing stressed that she’s witnessing the developing an amazing platform for Mayo
currently evolving to build a world- cryptocurrencies suddenly competing with flat convergence of banking, international finance and Twala’s Stock Up start-up, which is due to
class fintech ecosystem in the Cardiff currencies, disrupting the existing payment risk management right across financial services,
launch in September 2021. It shows that
system and posing a real challenge to central with fintech being both a key driver and enabler of
Capital Region, we now look in more and commercial banks. this – and that’s given the School of Technologies if we work, think and act together, we can
detail at ‘collaboration’ and the crucial the international profile to bring together leading achieve our vision – and maybe even more.”
importance of it in realising the The Academics at Cardiff University’s Fintech academics from across the world, a tangible
ambition to build a cluster of global Research Group are working with a number testimony to what’s happening in this region and This emerging culture of collaboration across CCR
standing. of enterprises on collaborative R&D projects, the huge potential for what could happen next. gives credence to the Fintech Wales vision of building
combining innovative business models and a sector that will enjoy global repute – and that
The UK Government-commissioned Kalifa computer technology to improve financial Making sure that the next generation of people in collaboration extends beyond co-operation between
Report identified collaboration as a key factor services by utilising cryptocurrencies, the region benefit directly from this is at the heart of companies and academia: with a network of companies
in the success of any fintech industry, making blockchain, open banking, insuretech, robo- the work being done in schools by Dr. Fiona Carroll, supporting fintechs in their growth and development.
an ongoing case for fostering partnerships advisors, digital payment systems, crowdfunding, Senior Lecturer in Digital Media and Smart Technology We’ll be looking at one such company – Ship Shape
between financial institutions and fintech firms algorithmic and high frequency trading, machine at the Cardiff School of Technologies. Dr Carroll’s VC – next week, finding out how their unique semantic
and “building coalitions across the value chain learning and computer-assisted textual analysis. passion is Human Computer Interaction (HCI) and how algorithm helps fintech start-ups identify the investors
of economic actors to address specific industry computing actually influences us and our behaviour and the funding that’s right for them.
challenges, such as the development of the The results are already tangible, with companies – and for her it’s a fundamental given that we need
architecture and ecosystems for Open Finance such as ActiveQuote, Admiral, Confused and to get more females into the whole technology field,
and digital identities.” And that’s exactly what Wealthify all benefiting from these collaborative to make sure that the future is built on balanced,
is happening right here in our region, with our innovations – as well as the University’s Data representative and inclusive tech development.
10 The CCR Fintech Sector Edition www.cardiffcapitalregion.wales www.cardiffcapitalregion.wales The CCR Fintech Sector Edition 11
Opening up fairer access to financial
The Shape of capital for the human capital of South
Wales.
Fintech Funding “The need is great – and the benefits of bridging
for Start-Ups that gap are tremendous for any economy. I’m
fortunate to have participated in the Morgan Stanley
in CCR Multicultural Innovation Lab in New York, run by
the inspirational Carla Harris – and all the numbers
show that prejudicial access to capital costs the
world economies $4.4 trillion every year. Imagine
Last week we saw how an emerging the difference it would make if we could bring a small
culture of collaboration across fraction of that value to Wales. And imagine what
CCR gives credence to the Fintech it would mean for Wales to be seen as an inclusive
Wales vision of building a sector place for start-up fintechs – giving fairer access to
that will enjoy global repute. That capital in a world where 89% of funding goes to all-
male founding teams.”
collaboration extends beyond co-
operation between companies and
academia – with a network Prejudicial access to capital costs the
of specialist enterprises also world $4.4 trillion every year. Imagine ur strategy for Fintech Wales
O
supporting fintech in their growth bringing some of that lost value to Wales. Why not Wales?
and development. has clearly identified the need to
get far more start-ups into the top
“We believe your idea should be funded based on “Having worked out there in the field and studied at the
Ship Shape VC is one such player in this vitally merit, not network. And we aim to get results for Oxford University Fintech Programme, I can see the of our funnel – giving us the
important market: a unique recommendation you in three business days. You can spend up to potential of fintech here in Wales. There’s a vision to build a opportunity to nurture them into
platform employing algorithms that help fintech nine months in a ‘fundraise’ and that eats into time fintech sector of global repute in this region – and why not?
start-ups identify the investors at VC firms that and resource; in a very inefficient way. So we bring a The infrastructure is here, the ambition is here, the human mid-sized enterprises. I’m hugely
are right for them. science and a focus, answering critical questions such capital is here. It’s also a place that offers a much better impressed by the vision of Daniel
as “will they bring more than just money to the table” quality of life and that’s important to us as a company as
The company has itself secured funding from and “how can I show my idea to be relevant to them”, we rely on keeping our brains fresh, which is why we work and his team – and the commitment
the UK Innovation Fund and are winners of as well as the answering obvious conundrum of “who a four-and-and-a-half day week. It’s one of the reasons they have shown in bringing this
the Sustainable Innovation Fund Grant – so we should I approach – and how”. why Wales is an attractive proposition to the right kind of
spoke with Daniel Sawko, founder of Ship Shape, investor. And I’ve found people here want you to help you
vital service and unique competitive
to discover how his team are helping start-ups to succeed. We’ve had so much help from Business Wales, edge to our fintech ecosystem here
connect with the investors who can help them We aim to get results for you in three some of the major Universities in South Wales ( Swansea, in Wales. We just need to back that
transform a concept or vision into a product or business days. Cardiff and UWTSD), from David Wooldridge at the Wales
service. Government IP Office – and from Sarah Williams-Gardener ambition and human capital with
at Fintech Wales.” access to the financial capital it
Identifying the investors who are right “The Ship Shape method of matching start-ups with
for start-ups. investors breaks the current closed circuits and deserves.”
gets people and their ideas into a network that’s Our strategy is to get far more start-ups into
“Across the world we’re seeing the democratisation predisposed to them and their idea. We save about the top of the funnel.
of the ability to start a tech business. If you have an 160 days of research time, with an algorithm that
idea, it’s becoming easier and easier to execute on works across a long tail of data and through AI
that idea. And so we have to start looking at Human analysis points the start-up in the right direction. Sarah Williams-Gardener, Chair of Fintech Wales,
Capital – and where there’s a disparity between the Saving that time and being matched with the right applauds the innovation being shown by the Ship
Human Capital and access to Financial Capital. investor is usually the difference between getting Shape team and a service that helps connect fintech
I spent most of 2020 locked down near Swansea off the ground or not – especially in the £250k+ visionaries with the initial seed capital and ongoing
and saw an abundance of Human Capital but investment market we work in. The companies that support they need to get their ideas to market:
comparatively little access to funding networks – and we have helped secure funding for all say that our
that’s what Ship Shape is here to address: opening up approach created far more positive conversations
access to the same sort of networks that other areas than any they had before – in a much shorter space
such as London have access to.” of time”.
12 The CCR Fintech Sector Edition www.cardiffcapitalregion.wales www.cardiffcapitalregion.wales The CCR Fintech Sector Edition 13
tech to an absolute necessity. We knew this was always “Probably the biggest ‘Thank You’ goes to the Barclays
going to happen at some point – by our calculations, cutting Accelerator programme for providing us access to their
out the middleman would save the industry £8bn every network and support in scaling Yoello Is there enough
year – but of course that journey accelerated to become support for fintech here in Wales? Arguably, there can
an ‘adapt or die’ situation given the necessity of running a never be enough, but we need to focus on giving our
hospitality business safely with social distancing and at a fintech businesses what they need to grow and compete
reduced capacity.” in a global market.”
It was clear that retail and hospitality needed to This shows what’s possible in fintech across the
modernise. That’s what we’ve been supporting. region.
As graduate of Cardiff University, what encouraged Sarah Williams-Gardener, CEO of Fintech Wales,
Sina to pursue his vision for contactless ordering and is “absolutely thrilled” by the market success and
cashless payment? industry recognition achieved by Sina and the
team at Yoello.
“By the time I came to finish my time at Cardiff University
I had gained an in-depth knowledge of payments and To have been at the heart of hospitality
technology, it became clear to me as a customer that transformation and win the top UK fintech
the hospitality industry needed to modernise and take award, all within a year of start-up, is
advantage of technology. COVID has clearly pushed this
absolutely astonishing”, says Sarah. “When
need in the most dramatic of ways. Now, two thirds of
consumers say they’re open to cashless methods and people ask me what’s possible across in
75% say they’ll now make choices out of home based on fintech here in Wales, I nod in the direction
how safe they feel. Savvy operators have been rethinking of Yoello and some of our other thriving
the role of tech and have created a new normal which start-ups and say ‘that’s what possible’.
elevates the customer experience – and opens up more
profit potential for their business. This is what and
Now let’s redouble our efforts to create
where we’ve been supporting.” more Yoello’s and more best-of-breed
fintechs across the region.”
Why the UK’s Rising Star 3.0 Fintech Sector Award (and joining
a prestigious list of alumni that includes Monzo,
It’s important to have mentors – and more practical
help too.
top-growing
Revolut, Just Eat and Deliveroo). Opportunities
are clearly there for us to grow. A board member of Fintech Wales and strong advocate
of collaboration across the CCR fintech community,
Fintech is a “I was thrilled that we have been recognised as the
UK’s stand out rising star Fintech by Tech Nation;
what support has Sina experienced during Yoello’s
journey from a start-up to a company that now
Welsh Fintech and to have won a place on Tech Nation’s acclaimed
Fintech growth programme” says Sina. “We’re
honoured to be recognised by such a prestigious
employs 40+ people?
“Gareth Lewis at Delio has been a brilliant mentor, always
programme, and it reflects just how far we have come sharing and encouraging me. He tells it like it is and that’s
Few sectors pivoted in the pandemic in a short space of time since we launched our mobile what you need to hear. Being the CEO of any start-up can
quite like the hospitality industry. And ordering product in July last year. The opportunities be an overwhelming experience, especially starting out so
a Cardiff-based fintech named Yoello are clearly there for us to grow, but it’s feet-on-the- it’s important to feel there’s like-minded people on hand
was at the forefront of enabling this ground time for me and the team too. I’m fortunate to bounce ideas off and receive some brutal, constructive
remarkable transformation. to be surrounded by an exceptional and experienced criticism from.”
senior management team with a wealth of experience
The brainchild of CEO and Founder Sina Yamani, to ensure we reach our potential. We don’t just want “It wasn’t easy being a 23-year old with no track record,
Yoello’s online ordering and payments platform to be another Fintech company, we want to ensure looking for a half million pound investment. It took an
has brought customers and merchants much we’re recognised globally in that top 1%.” incredible amount of networking, time and resource to
closer together, making transactions cheaper get to launch. There needs to be big shout outs to Business
and increasing businesses revenues by 30% Wales and Fintech Wales for all their help – and Cardiff
– disrupting the payments market by utilising From a ‘nice-to-have’ to an absolute necessity. Council too, who collaborated with us to bring Castle
open banking technology, to such an extent that Quarter Cafe, which generated over a quarter of a million
Yoello was announced as the top growing fintech “Our mobile ordering and payments platform has pounds for the local economy within the first 10 days of Image source: www.yoello.com
in the UK in February: winning Tech Nation’s rapidly gone from being nice-to-have hospitality opening.”
14 The CCR Fintech Sector Edition www.cardiffcapitalregion.wales www.cardiffcapitalregion.wales The CCR Fintech Sector Edition 15
We spoke with Llantwit Major-born chief Did Wales offer any advantages compared to other
executive and co-founder Gareth Lewis to locations? “We all know about the huge
discover why he and fellow founder David
“We’re every bit as good as anyone else – and our smallness success achieved by Admiral,
Newman set up Delio in Wales in 2015;
and what lessons he has learned over the can in one sense be a positive, because we can see and feel Confused and GoCompare –
the edges of our fintech community, rather than getting lost
past six years.
in a larger scene like London. But we can’t be complacent – and many people recognise the
the fintech sector in Wales has a window but needs to run phenomenal achievement of
“Why Wales? Why Not.” incredibly hard to make the most of the moment. We’re not
New York or San Francisco – we can’t afford to sit on our
successful scale-ups such as
“David and I were working in wealth management laurels, even for a moment. My message is clear: let’s do it Wealthify. Delio is beginning
and corporate finance. During this time, we noticed now. Let’s grab this opportunity in Wales.” to belong in that same
first-hand the changing demands of today’s high-net-
worth investors and wealth creators. We saw how conversation: a fintech success
Gareth Lewis, Co-Founder & Chief Executive, Delio We focused on delighting existing
they were becoming increasingly entrepreneurial,
clients with solutions that resonated that’s being made in Wales and
interested in private investment opportunities
across sectors that they knew and understood, and across the sector” is clearly going from strength to
spotted the market space to help a broad range strength with new platforms that
of organisations connect their clients with private Complacency is the last word you would associate
investment opportunities quickly, transparently and with Delio, as they increase market penetration across
continue to stay ahead of the
compliantly. Why did we choose Wales as the place North America, Asia and the Middle East. market and client expectations.
to bring alive the vision? The answer is why not? I was
As Gareth says, it’s time for us
working in Manchester at the time and to be frank, I “Very early on, we adopted the approach of working closely
was frustrated that Wales wasn’t thinking big enough in partnership with key strategic clients and building to show what we can do right
back then, with more opportunities presenting solutions around their needs” stresses Gareth. across fintech here in Wales.”
themselves in other parts of the UK. We clearly have
the human capital here in Wales – we, alongside “We focused on identifying the blockers that financial
fellow fintechs like Wealthify, Yoello and Credas have institutions experienced across private markets and
David Newman, Co-Founder, Delio
proven that – but we needed to be bold and back developed solutions that resonated with both them
ourselves. and their clients looking to invest capital – positioning
technology as an ‘enabler’ of financial services, rather
Transforming We’ve expanded to London,
Dubai, Singapore, Sydney,
than as a competitor – which meant we could engage
high-profile organisations very early in our own evolution.
the Fintech Geneva and New York” “Now we’re scaling our tech-offering to increase
interconnectivity across the financial sector, we understand
Private Markets “We consciously designed our platform to seamlessly
complement the operational processes of financial
the importance of continually developing new functionality
that will benefit our clients and users. The vision never
Proposition
institutions of any size” explains Gareth, “so we are, changes – to make the world of private investments more
in effect, a centralised own-branded digital hub for accessible and collaborative by widening the ability of
these organisations, with integrated modules that institutions, investors and private businesses to engage in
support all private markets activity. This allowed us a controlled, secure and compliant way. Through all the
Over the past five years, Delio has grown to expand our reach from the Cardiff HQ to London, iterations, we have remained true to our original idea –
to become one of the ‘hottest’ names on Dubai, Singapore, Sydney, Geneva and New York, and that’s a lesson worth remembering.”
with customers ranging from wealth managers, angel
the Welsh fintech scene – establishing networks and family offices to some of the largest
an international client base of more Scaling our tech-offering to increase
financial institutions in the world. So creating a
than 90 organisations, helping financial truly global business really can be done from here in interconnectivity across the finance
firms across the world to transform Wales.” industry”
their private markets propositions,
For Sarah Williams-Gardener, Chair of Fintech Wales,
through configurable technology that
the success and continued growth of Delio represents
enables customer organisations to make “We can’t be complacent
something of a landmark;
alternative investments more accessible – let’s do it now.”
and transparent for today’s investors.
16 The CCR Fintech Sector Edition www.cardiffcapitalregion.wales www.cardiffcapitalregion.wales The CCR Fintech Sector Edition 17
We’re making cryptocurrencies has evolved, with plenty of collaboration between
inclusive and accessible” government, academia and the industry itself. But
I really missed that feeling of making a tangible
“Coincover saw the opportunity to bring difference. I was craving the spirit of the start-up and
cryptocurrencies to the masses, to make it accessible scale-up, the impact you have on a business every
and inclusive – and since launching three years day. And I’ve certainly felt both of those dimensions
ago we’ve refined our approach to partner with the here. I love it.
world’s leading cryptocurrency solution providers,
which means we can deliver safety and assurance Building a balanced and
in cryptocurrency for individual investors, fund representative team, from
managers, professional traders and corporate
the ground up.”
customers. In terms of numbers, we protect over
a billion dollars of funds, but it’s really just the tip “We’re a rapidly growing team and by the end of 2021
of a very large iceberg. For example, PayPal have we will have quadrupled in size, with investment
committed to accepting cryptocurrency payments planned in our Customer Success, Sales, Marketing
in coming months and that will lead to really bring it and Technical teams – and the People Team itself,
to a mass market. We’re already being inundated by as we shape our culture around the skills and mind-
new customers from all over the world, every day – sets of the people we want and need. I’m encouraged
and will probably have tripled the size of our team by that we have a 60% female leadership team and
the end of this year to cope with the demand.” we’re conscious that we’ll be building a balanced
and representative team. It’s so refreshing being able
The World We protect over a billion dollars
of funds, but it’s really just the tip
to build all this from the ground up, to put in place
the right foundations and practices, to – and to look
Standard for
forward to seeing everyone share in the success of
of a very large iceberg” the company, through flexible working, share options
and, of course, the satisfaction of knowing that you’re
Cryptocurrency, “We’ve become the #1 brand in crypto safety by giving
customers peace of mind – whether it’s through
working for a unique company that’s leading the
world from Cardiff. In fact, our biggest challenge right
Created in deposit protection guarantee, or crypto secure key
storage and recovery. We have even evolved to
now is securing an office in Cardiff that matches our
global brand position – somewhere extraordinary for
Cardiff
provide theft cover, so our journey really has only just something that’s remarkable.”
begun. We’re regulated by the UK Financial Conduct
Authority and backed by venture capital and the
Development Bank of Wales, – so it’s safe to say that
“It shows our fintechs can
When the Coincover founders were we’re already a firmly established part of the UK and
tasked with investigating the future global fintech community. And we just happen to be lead the world from Wales”
of money at The Royal Mint, they genuinely unique – there’s no one else doing what we
are doing.”
became completely immersed in the “We’ve had plenty of support on our journey to date –
world of cryptocurrency. especially from the investment and ongoing support
We’re genuinely unique. There’s
of Development Bank Wales. It’s great to feel part of
The blockchain specialist and cybersecurity no one else doing what we’re something that’s taken root here in the region – it’s
expert saw the huge potential – but also a doing anywhere in the world.” yet another positive energy for a business that’s
huge problem: Crypto wasn’t safe. It’s a world succeeding by taking the stress and worry out of
targeted by hackers, where the loss of a mobile As a graduate from the Royal Welsh College holding, using and acquiring cryptocurrency.”
phone or laptop can result in vanished funds. So of Music & Drama – with a wide-ranging
in 2018 they created Coincover, in Cardiff, to background in L&D, Employee Engagement and For Sarah Williams-Gardener, Chair of Fintech
establish an industry-standard in safety. CSR – what brought Nadine to Coincover? Wales, the incredible rise of Coincover to
become a world-leader in three short years is
Today, Coincover is THE global safety standard “It’s certainly seems an unconventional route, but truly inspirational:
for crypto currency, so we spoke with Nadine acting is all about people and their motivation and
Beaton, who heads up the People function, about that’s always underpinned all my corporate roles. “It shows we can do it. It proves you can be a world-
the astonishing journey made to date by the I’d worked in the past at Bank of Scotland and leading fintech based here in our region. And it’s a
team at Coincover – and the ambitious vision Gocompare, as well as most recently at University taste of what’s to come from fintech in Wales.”
that’s driving this phenomenal fintech success of South Wales, so I also had a perspective on the
story created here in the Welsh capital. way the fintech community here in South East Wales
18 The CCR Fintech Sector Edition www.cardiffcapitalregion.wales www.cardiffcapitalregion.wales The CCR Fintech Sector Edition
The 19platform that works offline, through SMS, to help low- “From what I have seen thus far, I feel Wales is going to be
income earners become instant investors and financially one of the world’s most impactful fintech centres. The idea
thrive. There are three simple steps: first users register with of working in toxic work environments is dwindling and
an ID number, input their age, and finally their savings goals Wales is welcoming of people, helping them thrive. Wales
– a high-risk or low-risk investment. Once all these steps are also understands collaboration, how to support – and the
completed, our AI-enhanced platform does the rest. With value of wider access. Nurturing those traits will not only
a minimum payment of R20, effectively £1, this is invested help Wales achieve more – but help the rest of the world
into a machine learning process that matches the user with become a fairer, more prosperous place.”
the appropriate, ESG-driven investment. It’s being built at
the University of South Wales and the idea is to use South Potentially profound benefits to some of the most
Africa as a case study. After that, the expansion possibilities disadvantaged people across the world
are endless.
Sarah Williams-Gardener, CEO of Fintech Wales,
The financial system has failed many people is deeply impressed by the vision and commitment
shown by Mayo in turning a dream into a reality,
“The work that we’re all doing in fintech has huge
significance. Unfortunately, finance has historically not
given the power to those who look like me – but that doesn’t This is more than commercially
mean there isn’t an opportunity to share the wealth. This
is just the beginning of a new chapter in the accessibility of
transformational – it brings
capital; and that’s one of the reasons why I love working in potentially profound benefits to
Fintech, because I can use my digital media and financial
journalism skills, not only to share the wealth but to give
some of the most disadvantaged
A Welsh Fintech Stock Up is the brainchild of South
African-born Mayo Twala, who took
a voice to all those like me who require a mouthpiece. The
system has failed those with no financial credibility. This
and vulnerable people,across the
world. We’ve long championed
Empowering time out from her CEO role to detail isn’t because the customers are not credible, but because
financial institutions have followed the status quo, anyone inclusion and access – and Stock
the concept behind her platform – who looks like me would have a much harder time getting Up brings that to life in the most
Disadvantaged and her journey to Cardiff. into the industry. However, I am relatively privileged,
imagine individuals who have much less than me? brilliant way.”
People A new chapter in sharing the wealth Surely we need to be better as human beings?
Worldwide
“I’m a trained media professional with an MA in Incredible support from the fintech community
Digital Media from Cardiff University and didn’t at in the region
first realise I could bring this skillset to finance. After
graduating I moved to London, where I worked for a “I’ve had incredible support from the fintech community
As our series on the CCR fintech very well-established financial PR firm. I thought it here in South Wales – from the moment I pitched Stock-
cluster comes to a close, we feature was my dream job until I realised I had to prioritise Up virtually to Tramshed Tech stakeholders, to when I
the inspirational story of a fresh either the job or my mental health. So, I packed all my messaged Gavin Powell at Fintech Wales, who responded
belongings and at great cost with no job moved back instantaneously. The rest, as they say, is history – with the
start-up that’s due to launch this to Cardiff where I found the environment to be much University of South Wales becoming the perfect partner
September – powered by a pioneering more supportive. That’s when I decided to pursue my for developing the platform. And I think that, together, we
vision to democratise and make more vision for Stock Up – and now that dream is turning can change the world. Finance has predominantly been
accessible wealth creation, through into a reality, with our launch scheduled for early controlled by privileged white males but, as history has
novel financial technology. autumn.” taught us, it does catch up eventually. Now is that time.
Women like Sarah Williams-Gardner, the CEO of Fintech
Wales shine bright. So I think the world is a place where
Stock Up is all about compassion – to help low- we can achieve and progress.
income earners achieve their financial goals
“Stock Up is fundamentally about all compassion.
“Wales could be one of
It came from understanding the struggles that my
parents and grandparents experienced growing up in the most impactful fintech
South Africa, where they had very little – and even centres in the world”
less chance of finding help from anywhere. It’s a free
20 The CCR Fintech Sector Edition www.cardiffcapitalregion.wales www.cardiffcapitalregion.wales The CCR Fintech Sector Edition 21You can also read
