From London to New York: A Fintech Exodus

Will PISCES and Policy Shifts Be Enough to Save the LSE?

Alex Speedie

June 10, 2025

In 2017, Taavet Hinrikus, co-founder of Wise, told a conference that if he were starting TransferWise again, he would not choose London. Eight years later, his words ring true. Wise is now preparing to move its listing to New York, raising new questions about London’s ability to attract and retain leading tech companies.

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This decision is the latest sign that London’s position as a global financial centre is weakening, especially when it comes to high-growth technology firms. Wise, despite a market valuation of £12 billion, could not join the FTSE 100 because of its dual class share structure, which gives more voting power to its founders. This structure made it less attractive to institutional investors, reducing liquidity in its shares.

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Other fintech companies are also looking elsewhere. Klarna has chosen New York for its listing. Revolut’s CEO has said that listing in London does not make sense. These moves suggest a growing trend away from the London Stock Exchange.

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The numbers back this up. In the first quarter of 2025, only five companies listed in London, raising just £74.7 million. Meanwhile, the global IPO market grew by 20% year on year, with 291 companies raising $29.3 billion. In the United States alone, 59 companies listed, raising £8.9 billion.

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The UK needs to keep successful technology companies close and encourage them to list domestically. All eyes are now on Monzo, Starling, and Zilch. But if both Wise and Revolut end up in New York, it could become the standard path for others to follow. Zilch’s CEO has already said the company will not list in London unless there are serious changes. Last year, 88 companies left the London Stock Exchange, the most in 15 years.

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New rules coming into effect on July 29 will allow dual class share structures, but the bigger issue may be the broader investment environment. The government has proposed requiring pension funds to invest more in UK assets. This plan has faced strong opposition, including from Scottish Widows.

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Tax policy is also a concern. The UK’s share transaction tax puts it at a disadvantage compared to markets like New York, Singapore, or Hong Kong, which do not have such a tax. Although this tax was originally part of EU policy, the UK has kept it and now plans to remove the £1,000 threshold before it becomes payable. At the same time, the recent increase in corporation tax from 19% to 25% may further discourage investment.

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There is some hope in new initiatives. One of them is PISCES, a platform designed to help growing businesses access capital. Trading is expected to begin in autumn 2025, and interest from global investors is building. Companies do not need to be based in the UK to take part, which could help attract more users. However, for established fintechs like Revolut, Monzo, and Starling, this may come too late.

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The Chancellor is expected to announce new financial services reforms on July 15. These reforms will need to go beyond small regulatory tweaks if the UK wants to remain competitive. The real test will be whether the next generation of Fintech IPOs happen in London or are elsewhere.

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From London to New York: A Fintech Exodus

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