In the wake of its industrial heritage, Manchester, the UK’s third-largest city, is forging a new digital identity. The city’s fintech sector has surged, tripling in size over three years and projected to contribute £1bn to the local economy.
Susie Holmes, partner and financial services lead for the North at PwC UK, is optimistic about Manchester’s potential. She highlights the city’s robust fintech ecosystem, citing a blend of business and tech infrastructure, growing skills and capabilities, and a strong presence of financial institutions.
Manchester boasts a talent pool of over 120,000 students from five universities, with nearly 30,000 focused on STEM subjects. The University of Manchester’s collaboration with The Alan Turing Institute has also attracted numerous AI companies, benefiting global financial services firms seeking to integrate new technologies into their products.
Holmes underscores the importance of collaboration between educational institutions and businesses to develop financial expertise. She emphasizes industry-relevant course content and early engagement with schools and colleges. PwC and other organizations offer various programs, including alternative pathways for school leavers, enabling young people from diverse backgrounds to gain skills and experience while working and studying.
“Manchester has hit the sweet spot with private investment and academic growth over the past decade, making it a great place to live and work,” writes Rachael Braddick, managing director of Manchester-based proptech firm Helpthemove. She also highlights the city’s more affordable housing and amenities compared to London, potentially attracting top talent, especially amid rising living costs.
Despite the growing fintech scene, a significant funding gap persists. Praetura Ventures estimates that northern startups could receive nearly £10bn more annually if funded at the same level as their London counterparts.
Holmes identifies another major challenge: infrastructure. “Transport is one of the biggest issues,” she notes. “Better connections to other parts of the country would make Manchester more attractive, drawing in more talent and corporate investment.”
The cancellation of the northern leg of HS2 has been viewed as a setback for the city’s ambitions. Nevertheless, Manchester has managed to attract established fintech firms, with companies like Revolut, Starling Bank, Kroo, Adyen, and Klarna all establishing offices in the city’s financial district.
Holmes sees potential in this trend. “Facilities and physical spaces contribute to the sector’s success,” she says. She envisions platforms where entrepreneurs, financial services firms, and investors can collaborate, sharing resources, expertise, and insights to foster sector growth and evolution.
“Manchester has a great opportunity to build its presence in financial services and fintech,” Holmes asserts, while cautioning that the sector “will need to compete with other sectors, industries, and regions for talent.”
Manchester’s challenge lies in leveraging its strengths—its diverse workforce, strong academic institutions, and growing ecosystem of established fintech players—while addressing funding gaps and infrastructure issues. The city that sparked the industrial revolution and modern computing may shape its fintech future by successfully balancing these elements.
At Cornerstone, we are a global mobility company dedicated to helping individuals, companies, and employees relocate seamlessly. If you are looking to relocate to Manchester, Contact us for expert assistance in making your move to Manchester or any other top destination a success. Our Manchester relocation services ensure a smooth transition, allowing you to focus on your new beginnings in this vibrant city. For all your Manchester relocation needs, we are here to provide support and expertise.