The Reasons Wales Has Quickly Become the Cost Competitive Choice for Fintech Founders
Seeking out high performing and competitively priced locations has become a fantastic opportunity for savvy startups looking to gain a competitive advantage over their rivals.
As remote and flexible working increasingly becomes the norm, many companies are deciding to relocate to dynamic regions such as Wales which are offering the opportunity for founders to innovate under significantly lighter financial pressures than those found in London.
What Makes Wales Cost-Competitive?
Wales is an excellent example of a highly cost competitive region that’s rapidly becoming a go-to destination for ambitious founders seeking value for their investment.
Cardiff’s InsurTech revolution has highlighted the benefits of leveraging favourable regional market conditions to your advantage. Industry-leading Insurance comparison companies, Admiral, Go Compare, and Confused.com, have all proven that scaling operations outside London is not only possible but a major reason for their continued success.
The abundance of talent in the region from both universities and school leavers is high. This availability of this skilled workforce means less time is needed to source quality candidates for the desired position. As a result, recruitment costs are kept to a minimum.
This is brought into focus when benchmarked against regions across the UK, a recent government estimate the annual cost of setting up a Software Development Centre operation of 100 staff at a property of 2000m² stood at almost half the yearly cost of the same process in London.
Property overheads are an important consideration when deciding where to base a company’s operations. While a comfortable modern office space might be unsustainable for many startups in London, Wales offers ambitious entrepreneurs the chance to start as they mean to go on, by settling into spacious work environments that project professionalism at a fraction of the cost found elsewhere.
The benefits of being able to afford a better work environment also positively impacts staff wellbeing, brand perception, and functionality to conduct activities and expand in ways that would be otherwise impossible. These less tangible benefits are just as crucial to scaling an operations succesfully.
Standard of Living
The benefits of having beautiful countryside and coastlines only ever a short drive away means a significant quality of life improvement for those who have decided to relocate to Wales from heavily urban areas.
Coupled with lower house prices and cost of living, directors and staff alike can achieve a significantly higher quality of life resulting in sizable increases in disposable income.
That’s where Wales offers a unique combination to investors. It has the vibrancy and culture of cities such as Cardiff and Swansea, coupled with the connectivity of a two-hour train journey to London. Adding to that two international airports in the region, connecting with the world from the region’s beautiful natural backdrop has never been easier.
The global pandemic has set into motion a general reframing of our work-life balance. The increased importance placed on our standard of living and desire to spend our free time with family rather than with strangers on the commute, has the potential to continue the shift towards flexible and remote working.
If that is to be the case, then the standard of living and the cost-competitive advantages offered by cost-effective locations such as Wales could prove impossible to ignore.
For more articles and features from the world of Welsh FinTech visit our latest news page here.