London has dropped from fifth to sixth in the global FinTech rankings, according to the latest Global Financial Centres Index 40 (GFCI 40), even as the city retains its position as the world's second-leading financial centre behind New York.
The index, which assesses the competitiveness of 117 financial centres worldwide, places Hong Kong at the top of the FinTech rankings, followed by New York, Shenzhen, Singapore, and Shanghai — with London falling behind as Asia-Pacific hubs continue to strengthen their positions.
Leo Labeis, CEO and Founder of London-based RegTech firm REGnosys, says the findings are a wake-up call for the UK, but also an opportunity.
"London holding onto its position as the world's second-leading financial centre reflects the depth of its markets and regulatory expertise," said Labeis. "But falling to sixth in the FinTech rankings is a reminder that this position isn't guaranteed, particularly as financial centres across Asia-Pacific continue to gain ground."
Labeis points to RegTech as an area where London could reassert its competitive edge. He highlights the Bank of England and FCA's ongoing work to harmonise transaction and post-trade reporting across MiFIR, EMIR and SFTR as a strong foundation to build upon.
"Reducing duplication and making reporting simpler and more consistent could save firms millions in compliance costs, while also giving regulators better quality data," he said.
However, Labeis warns that regulatory reform alone will not be enough. "If the UK wants to remain a leading global financial and technology centre, there needs to be greater government support for R&D and investment in RegTech. Backing the sector will help UK firms develop and scale the technology that can make our markets more efficient, while strengthening London's position as competition between financial centres intensifies."
