Will London finally topple New York and take its place as the world’s leading fintech hub?

According to Z/Yen’s 37th Global Financial Centres Index (GFCI 37), the Square Mile is snapping at the heels of the Big Apple.

New York and London maintained their respective first and second spot in the GFCI 37’s fintech ranking, but the gap between the two financial centre’s ratings was reduced to a singular point.

The City climbed 23 points to 748, compared to New York’s 12-point jump to 749. 

This tightened the gap between the trans-Atlantic centres to its closest within the last ten editions of the GFCI.

Janine Hirt, the chief executive of Innovate Finance, told City AM: “London is a world leader in fintech and financial innovation, and this preeminence has cemented our position as a global financial powerhouse.

“The narrowing gap with New York is a testament to how our outstanding UK fintech community continues to grow from strength to strength.”

Innovate Finance, the independent industry body for UK fintech, pioneered the country’s fintech development with the creation of a “Unicorn Council” last year.

The co-chairs of the council joined fintech executives at 11 Downing Street on Tuesday, as the government turned to the industry for help with growth.

Hirt stressed “the race isn’t over,” as other financial centres across the globe scale up their fintech ambitions.

She called for continued “bold action” and identified driving investment, fostering pro-tech regulation and attracting top talent as key jobs.

“The opportunity is ours, and now is the time to seize it and secure London and the UK’s wider leadership in fintech and, therefore, financial services more broadly,” she said.

US woes provide opportunity for UK fintech

Rami Cassis, chief executive of Parabellum Investments, told City AM: “The actions coming out of the White House, which is tipping the US towards recession,” would accelerate London’s climb to the top.  

“If this continues, it will only hurt New York’s position as a fintech hub.

“Investors will be less likely to invest, consumer confidence will collapse, and the bottom could fall out of the IPO market.

“If fintech valuations in New York start to fall, this will have a dramatic impact on its attractiveness,” Cassis said.

Several of fintech’s biggest names are anticipated to go public this year, and any listing will provide a major boost to markets on either side of the Atlantic.

Revolut dealt a major blow to London in December after the firm’s chief executive said a public listing in the City was “not rational”.

However, Monzo and Starling, two darlings of the UK fintech science, have signalled they could list in London. If either goes ahead, it could be a boost for the Square Mile.

Cassis said the “relative stability” of Europe was improving its attractiveness and London’s “central place puts it in a prime position to benefit”.

Although, he noted the journey to the top of the fintech mountain was an “uphill battle”.

The US’ “bigger, deeper consumer market with deep wells of venture capital cash” gives New York a “natural advantage”.

“The US also has a greater appetite for risk and a stronger culture of entrepreneurialism. 

“We’re at risk of deluding ourselves if we think it’s possible for London to overcome those inherent, structural advantages easily.”

Momentum is on London’s side

Efforts by Labour to deregulate the City to boost the economy could help boost London’s attractiveness.

In early March, the Prime Minister and Chancellor announced that they would be folding the Payments System Regulator (PSR) into the Financial Conduct Authority (FCA). 

Simon Merchant, chief executive of Flagstone, which raised one of the UK’s largest fintech rounds of 2024 at £108m, told City AM the decisions on regulation showed a “commitment by the state” to support fintech growth.

Merchant said: “Stimulating and sustaining fintech investment has been critical to London’s overall financial services dominance. 

“Fintech investing is an area where London is gaining momentum in comparison to New York.”

He added the key to London eclipsing New York was with IPOs.

“The London market needs some successful IPOs in the second half of the year to give investors confidence and build momentum into 2026. 

“UK fintech isn’t short of hotly touted IPO contenders,” he stated.

However, Matt Cooper, the boss of Europe’s biggest equity crowdfunding platform Crowdcube, told City AM: “It’s not all about going public anymore.

“London’s ability to close the gap on New York is down in large part to how London has learnt to think radically differently about how we fund and get behind private British businesses.”

Cooper said London’s ability to get ahead and stay ahead, would involve combining regulatory regimes and innovative funding efforts. 

He cited initiatives such as Pisces – the Private Intermittent Securities and Capital Exchange System – as “proof that the City is thinking differently about how we get behind private businesses and reframe the idea that staying private can be a huge boost to future growth”

“Secondary share sales too have seen a huge resurgence in the last year – particularly among fintech companies that have become City stalwarts like Monzo, Revolut and Moneybox.”

As global markets fall into uncertainty and a number of the industry’s biggest names eye public listings, the race to be the world’s top fintech hub enters a new era – an era where London could seize New York’s crown.