Stocks to watch as London races to become fintech frontier

Highlights:

• A survey has revealed that the UK capital can dominate the world of startups, especially in the fintech sector.
• The latest insights come when the country is dealing with unprecedented financial challenges.

When it comes to financial services, the UK has long been leading the race. In fact, as a city, London has dominated the financial services sector in the UK and Europe. With the rising number of fintech firms in the city, it is becoming a global fintech hub. But its reputation as a financial centre hasn't been solid this year due to lesser company floatation. Cities like Paris and Amsterdam have also been strong contenders for the position of Europe's primary choice for global business.

However, there's a ray of hope. A survey has revealed that the UK capital can still dominate in startups, especially in the fintech sector.

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Undertaken by US-based global venture fund Accel and Dealroom, which provide data on startups, the survey highlights that London is the most successful place in the region for employees of 'unicorn' firms to establish new startups. Unicorn is a name given to a recently-floated firm with a valuation of over $1 billion.

The latest insights come when the country is dealing with unprecedented financial challenges. Inflation has broken decades-old records, food and other necessities are getting expensive month by month, and the most prolonged recession in a century is looming.

In the wake of this information, let's check out some stocks listed on the London Stock Exchange.

Wise Plc (LON: WISE)

The London-based fintech company holds a market cap of £6,627.61 million and an EPS of 1.88 as of 1 December. In the six months to 30 September, the company reported growth in its earnings due to a surge in customer volumes. Its pre-tax profit during the period jumped to £51.3 million, 173% more than the same period last year. The stock value has slipped by more than 20% in the past year. WISE shares were trading at GBX 647.80, up 0.16% as of 9:58 am GMT on Thursday.

LendInvest PLC (LON:LINV)

The company is in the business of property lending and investing. A constituent of the FTSE AIM All-Share index, it presently has a market cap of £113.47 million, and its EPS stands at 0.08 as of 1 December. Its share value has nosedived by more than 56% in the past year. The share price stood at GBX 82.00 as of 10:01 am GMT on Thursday.

PensionBee Group Plc (LON: PBEE)

Another British startup, PensionBee Group, aims to simplify pension savings for its customers. The group holds a market capitalisation of £126.99 million, and its one-year return stands in the negative territory at -58.02% as of 1 December. The stock traded 3.51% lower at GBX 55.00 as of 10:04 am GMT on Thursday.

Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.