The FinTech Five – 18th November 2023 

Welcome to the FinTech Five, where we take a fortnightly look at the best articles, news, insights and features from our FinTech Wales members and the Financial Services industry in the UK.

1. Lexington Corporate Finance shares their Q3 IT & Technology M&A Review.

Lexington Unveils Q3 2023 IT and Technology Market Report, Highlighting Industry Trends and Opportunities.

About Lexington: Lexington is a premier financial advisory firm, guiding businesses through strategic growth and exit opportunities. With a commitment to excellence, Lexington empowers clients with comprehensive insights and tailored solutions for success in dynamic market landscapes.

Lexington has provided its Q3 2023 IT and Technology market report which analyses the key themes that have shaped M&A activity this quarter.

This quarter has seen a 10% decline in overall deal volumes in the sector compared with the previous quarter. Despite this, valuation multiples in the sector have continued to increase as macroeconomic projections begin to brighten. Private Equity/Venture Capital transactions drove a significant proportion of deals this quarter, accounting for 53% of total transactions, indicating that significant appetite in the sector remains and there is a growing confidence in the market outlook.

Despite economic factors faced during the year, IT & technology remains an attractive sector for both Private Equity investors and strategic trade buyers and we are optimistic that deal opportunities will increase into Q4 2023 and beyond.

Click here to find out more about Lexington Corporate Finance Q3 IT & Technology M&A Review. 

2. Free Tech R&D Support on Offer for Welsh SMEs. 

Small businesses across large areas of Wales are being offered support with tech research and development from experts at the University of South Wales (USW).

CEMET – the Centre of Excellence in Mobile and Emerging Technologies, which is based at USW – has been successful in securing funding to run a project which will support start-ups, micro companies, SMEs, and social enterprises, through a bespoke six-to-eight-week fully-funded programme.

The funding for the programme has come from the UK Shared Prosperity Fund (UKSPF), which CEMET has secured from a number of local authorities across Wales, including Neath Port Talbot, Swansea, Carmarthenshire, Powys, Caerphilly, and Vale of Glamorgan.

Clayton Jones, who is Programme Manager at CEMET, said:

“We specialise in supporting businesses and the public sector with the creation and adoption of mobile and emerging technology through collaborative R&D projects.

“This programme will consist of rapid prototyping culminating in the creation of a software or hardware system with which to test the market and secure further grant and investment opportunities.

“This will enable businesses to experience growth and offer higher-skilled employment opportunities in local areas, and can be used to explore emerging technologies such as Virtual Reality, Augmented Reality, Artificial Intelligence, Machine Learning, and the Internet of Things (IoT).”

Click here to read the full article from Business News Wales.

 3. Pepper Money introduces product changes: Pepper Money replaces residential range.

Pepper Money has repriced rates, reduced fees and simplified products on its Residential mortgage range.

The specialist lender has streamlined its offering of Pepper 48 products to cater to more customers with smaller deposits. This move supports Pepper’s commitment to helping mortgage customers who face challenges with higher LTVs. 

In addition, Pepper Money has reduced its largest Completion Fee by £200, bringing it to just £795.  

Paul Adams, Sales Director at Pepper Money, says:

“Ongoing volatility in the money markets is continuing to impact all lenders and brokers, with rate changes becoming a near daily occurrence.”

“At Pepper Money, we need to respond to movements in SWAP rates just like other lenders, but we also try to introduce these changes alongside more positive improvements to our products and to support brokers with clear communication and reasonable notice periods”

Click here to find out more.

4. Inter.link Expands Global Reach to the UK and Joins LINX in London

Inter.link, a global Network-as-a-Service provider, is excited to announce its partnership with Telehouse and membership with the London Internet Exchange (LINX).

Inter.link has strategically chosen to collaborate with two network powerhouses with strong presences in the UK, Telehouse, a provider of industry-leading data centre colocation services, and LINX, one of the largest internet exchanges. Together, they create one of the most important interconnection locations in the world. Telehouse’s London Docklands site is the primary home of LINX and Europe’s most connected data centre campus.

Along with growing its UK presence, Inter.link and Telehouse share mutual commitments towards sustainability, with the London Docklands site also powered by 100% renewable energy. As part of its continued expansion, Inter.link has also connected with Telehouse in Paris. LINX is a leading peering exchange and continues to expand their reach across the UK, making them an essential connection for Inter.link.

Jennifer Holmes, LINX CCO, says:

“We are pleased to welcome Inter.link to the LINX member network in the UK. The organisation is a new and fast-growing Network-as-a Service provider and it’s great to hear that peering at LINX in London was top of the agenda when building a new point of presence in the UK.”

Click the link to read more about Inter.Link partnership with LINX.

 5. Fintech Awards Wales Exclusive Interview: Steve Dukes, CEO, Confused.com

In the wake of the 2023 Fintech Awards Wales, Matt Hyde, Director of Recruit121 and the Fintech Awards Wales, engages in exclusive interviews with the sponsors and prominent figures at the forefront of the FinTech sector in Wales.

The Fintech Awards Wales serve as a platform to acknowledge and honour the remarkable accomplishments of individuals, companies, and academic institutions within the Welsh FinTech landscape.

In this special series, Matt introduces you to the key figures driving innovation and progress in this dynamic industry. 

This week Matt speaks to Steve Dukes, CEO, Confused.com. 

Steve Dukes commented that: “ Our local fintech ecosystem is growing and very collaborative – that’s one of our stand out strengths.

“We’ve been working with FinTech Wales for a number of years now, which gives us the opportunity to help fuel this momentum by working with others. This can be supporting skills development and nurturing local talent or as simple as providing our office space for tech meet-ups and giving like minded people the chance to network  – all of these things make a difference over the long term.” 

Click here to read the full interview. 

Until Next Time

That concludes this week’s edition of FinTech Five. We appreciate your readership, and remember to join us every two weeks for the latest and greatest news highlights from our esteemed FinTech Wales membership. Thank you for staying informed!