The new UK boss of Revolut Ltd., Francesca Carlesi, has warned that London's position as a global fintech hub is at risk due to increased competition from cities like Paris and New York.

Revolut Boss Calls for Action to Secure London's Position as Global Fintech Hub

Since the financial crisis, London has been a leader in digital bank launches, but Carlesi believes that "something has shifted in the last two or three years." To fight that, Carlesi, who became a part of Revolut in December, has joined a new Innovative Finance's "Unicorn Council" of the UK's largest fintechs to push the government on startup -friendly policies.

Recent studies conducted by Tracxn have revealed that London's status as a fintech hub is under threat. The 2023 summary of fintech startup financing showed that the UK, among other locations, experienced one of the most significant drops in investment activity. Fintech financing in the country fell 63% to $4.2 billion, compared to $11.2 billion reported in 2022.

Although the UK remained in second place after the USA in terms of fintech funding, this continues the downturn that began in 2022. At that time, according to data from Innovative Finance, total global fintech funding had decreased 30% to $95 billion.

"The drop in global and UK FinTech investment is an expected result of the current economic landscape," Janine Hirt, the CEO of Innovate Finance, stated. Hirt added that they remain committed to supporting the FinTech ecosystem.

Revolut Eyes London for IPO

Despite the Co-Founder's, Nik Storonsky, complaints about British regulations and the current slump in fintech activity, Carlesi suggests that London remains on Revolut's radar for a potential initial public offering. Revolut, valued at $33 billion, is in 38 countries and has 1,200 employees in the UK, its main market.

Carlesi's focus at Revolut is addressing a string of issues, including simplifying its share structure and dealing with problems raised by its auditor's warning that it could not verify the majority of the 2021 revenues. Moreover, the 2022 report was published with a huge delay.

Revolut has faced challenges in obtaining a UK banking license, but Carlesi remains optimistic, stating that the firm is "determined to do the hard work to get there." She further emphasizes the company's "superpower" in artificial intelligence and machine learning, which it is deploying to fight fraud and help others in the sector.

Carlesi believes that Revolut has the potential to become a global leader in the fintech sector, setting itself apart from traditional banks by offering a global platform with specific services in each country.