As the UK continues to navigate economic change and rising consumer demand for financial services, new data reveals a surge in new business registrations within the Finance and Insurance sector. While London unsurprisingly leads the way with the highest volume of new business activity in 2024 (66,920 new companies), other regional hubs such as Greater Manchester and Westminster are proving to be fertile ground for startups in this fast-growing space.
According to new research from Funding Circle, the UK’s leading SME loan platform, the Finance and Insurance sector saw a 5% year-on-year growth in new business registrations in 2024 — one of the strongest performing sectors after Business Support Services. This uptick is being driven by shifting consumer expectations, advances in fintech, and a growing demand for flexible, accessible financial products.
Why finance and insurance?
A changing economy and financial pressures have led to rising consumer and business needs for loans, insurance, and investment products in 2024, leading to business opportunities within the finance and insurance sectors. As fintech sees further technological advancements, such as digital payments, it becomes more accessible and efficient for both consumers and businesses.
Additionally, the changing regulatory landscape has created more opportunities for startups and SMEs to offer tailored products and services. Factors such as the increasing risk of cybercrime and climate change have also seen a growing need for insurance services. These factors make finance and insurance an attractive sector for new businesses seeking to capitalise on these emerging trends.
Where are finance businesses thriving?
While London remains the UK’s financial capital, emerging hotspots include:
Greater Manchester – fast becoming a Northern fintech hub, bolstered by its tech talent, accelerator programmes, and lower operating costs.
West Midlands – showing growth in both finance and supporting services, thanks to strong transport links and a growing professional services base.
Brighton and Oxford – cities in the South East, benefiting from London’s economic influence, lower overheads, and access to top talent from local universities.
These cities offer access to skilled workforces, robust infrastructure, and growing local demand — all critical ingredients for success in the finance and insurance industry.
Growing sectors for new businesses in the UK
Although some sectors dominate the UK market, year-on-year growth in specific industries highlights key business trends and evolving consumer demand. Top growth sectors are:
Business administration and support services (17% growth YOY in new businesses) – London, Greater Manchester, West Midlands
Finance and insurance (5% growth YOY in new businesses) – London, Westminster, Greater Manchester
Accommodation and food services (3% growth YOY in new businesses) – London, Greater Manchester, West Midlands
Supporting business growth with flexible finance
As more entrepreneurs seize these opportunities, access to capital remains a key enabler. Funding Circle offers fast, flexible loans tailored to the needs of small business owners, including those launching in the finance and insurance space.
Jerome Fernandez at Funding Circle comments, “The growth of new businesses is essential to strengthening the UK economy, and providing entrepreneurs with access to finance is key to turning their vision into reality. Despite recent challenges, data suggests a positive outlook, with ONS business insights revealing that 22% of trading businesses expect their turnover to rise by March 2025, and 20% anticipate overall performance growth within the next year. The data underscores the resilience of UK entrepreneurs, the shifting regional business dynamics, and the continued importance of financial support and policy initiatives to sustain and encourage business growth in the years ahead.
“When starting a business, choosing the right location is crucial for success. It’s important to consider the services you offer, how they fit within the local market, and the level of competition in the area to ensure your business can thrive. While concerns over taxation and rising costs persist, a business credit card can offer a flexible financial safety net, helping entrepreneurs to hit the ground running, manage cash flow, and keep their businesses running smoothly.”
As UK startups look to thrive amid evolving economic conditions, selecting the right location — and having access to the right funding — will be key. For those starting in finance and insurance, the data paints an encouraging picture: opportunity is widespread, and the sector is well-positioned for sustainable growth in the years ahead.
Data sets:
https://a.storyblok.com/f/102007/x/3ee0d6de23/2025-start-up-ambition-report.pdf
