Number of new UK financial start-ups up 28% in a year
More and more start-ups in areas ranging from fintech to consumer credit firms have sprung up in the last year in an ever competitive marketplace.
In the past year the number of new financial services businesses has increased by 28% as new FCA authorisations went up from 1,055 in 2013 to 1,352 in 2014, according to Interim Partners.
Challenger banks, consumer credit firms, crowd funding firms and fintech businesses are just some of the financial start-ups looking to capitalise on the necessity of their services, by providing competitive and transparent products, and better consumer service in underserved areas.
Examples of financial services start-ups that have recently received FCA approval include: Chartered Savings Bank, Crowdcube, Fidor Bank, Starling, CivilisedBank and Atom Bank.
The research suggests a shortage of supply and increased demand for specialist interims is leading to increased levels of pay. Rates for compliance and risk specialists have increased by up to 13%, from around £750 to £1,500 per day, and are being offered better expenses.
Elsewhere, credit risk controllers have seen an 11% increase, ranging from £700 to £1,350 per day, while liquidity management experts have experienced an 8% increase, from £750 to £1,400 per day.
Angela Hickmore, Partner at Interim Partners, commented: “Start-ups usually don’t have a full staff compliment in place when they first gain authorisation, as they can’t afford the huge fixed overheads.”
“The fast growth nature of these businesses means that they have to scale-up quickly, they can’t wait the three to six months it usually takes to hire a permanent senior executive.”
“Many are drafting in experienced interim managers that can be put in post quicker and crucially are geared up to hit the ground running. They have proven expertise in rolling out business plans and keeping rapid growth on track.”