The UK fintech sector is set to grow to more than 100,000 employees by 2030 while the number of companies is expected to double to 3,300 by the same year, research reveals.
Calling on the UK to champion a flexible immigration system, Innovate Finance and WPI Economics, which conducted the research, said the sector was "highly dependant" on global talent, with 42 per cent of the 76,500 fintech employees hailing from outside the UK and 28 per cent from the European Economic Area.
The two bodies warn that a more rigid immigration policy could lead to losses of £361m to the sector and "harm the attractiveness of the UK as a place to do business".
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While highlighting the capacity for the sector's growth, the report also said that the vast majority of companies – 82 per cent – had already faced difficulties in recruiting non-EEA migrants, which currently make up 14 per cent of the workforce.
The report predicts that under the most likely scenario for future immigration policy, in which the system for EEA migrants moves closer to that for non-EEA migrants, there will be a shortfall of 3,200 highly-skilled workers by 2030.
CEO of Innovate Finance Charlotte Crosswell said:“Access to talent is a perennial issue, and one which affects all sectors of our economy. This is not in light of Brexit, but Brexit shines a light on it and risks exacerbating the issue further.
"Without a flexible approach, the UK Fintech sector stands to lose its global pre-eminence, with Fintech companies already facing challenges in recruiting appropriate skills and talent.
"It is up to policy-makers, industry and academia to propose sensible recommendations to mitigate the impact of these findings and to ensure sectors such as FinTech continue to be an engine for UK innovation and growth."
Innovate Finance said the UK needed to adopt a number of measures to mitigate any impacts on the fintech sector, including redefining the meaning of a “highly-skilled” worker, investing in education and training local talent.
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