Alongside the size and depth of its financial markets and the health of its economy, a financial centre’s ability to foster innovation is now an important way to attract investors.
Based on a combination of regulatory, business and capital-raising environments as well as access to specific skills and the adoption of new technology by the local consumer market, the Silicon Valley area in the US is the clear leader among the world’s financial technology hubs, according to research by Accenture. Perhaps unsurprisingly, the Californian centre’s dominance is driven mostly by the number of fintech companies found in the area and their ability to raise funds locally.
Silicon Valley is followed in the ranking by New York and London, while the fourth place is shared by Boston and Shanghai. Interestingly, the Chinese hub displays the highest technology adoption score, 75% higher than Silicon Valley’s and more than twice the scores of the other Asian centres among the 14 ranked.
It would be tempting to view Singapore, in sixth place, as almost a mirror image of Shanghai. The city-state’s low technology adoption rate is balanced by exceptionally strong government support for the fintech industry, in stark contrast to Shanghai’s. Singapore’s renowned openness to innovation and the creation of a sandbox where start-ups can be allowed to test their ideas under less stringent rules have proven effective. Singapore’s top 'government support' score is followed closely by London’s.
Berlin, in ninth place – one of Europe's best known fintech centres – offers the best talent pool globally, followed by New York, Boston and Silicon Valley.
