London markets have suffered a torrid couple of years, but could fintech help turn the tide?

Swedish fintech Klarna marked the latest snub to the City after it announced it was pursuing a US-listing despite hopes the firm would float in London.

This followed 88 companies leaving the London Stock Exchange (LSE) last year, including tech darling Darktrace which jumped ship after it was acquired by US private equity Thoma Bravo in April 2024.

But hope is not lost.

Numerous young fintechs are waiting in the wings and a listing from any would provide a major boost to London and its status as a fintech hub.

Z/Yen’s 37th Global Finance Centre’s Index showed London was on the cusp of taking New York’s fintech crown, and a flurry of fintech listings may not only take the Square Mile to the top of global fintech, but also re-energise the embattled LSE.

Monzo

The digital challenger bank is a staple in UK fintech and would rank among the top choices across all industries for a listing.

Monzo increased its valuation to £4.5bn in October 2024 following a secondary share sale and boasts over 10m customers.

In June 2024, the fintech’s chief executive TS Anil told City AM he wished to grow the business “several times” larger before an IPO.

Anil is said to be at odds with the company’s boards over where to list, with the boss eyeing the US and the board keen to stay in the City.

Speculation of a listing mounted after the neobank appointed Tom Oldham, a former Nubank executive, as its chief financial Officer in November.

Monzo touted Oldham’s role “during a transformative period of hypergrowth and Nubank’s IPO,” which took place in New York in December 2021.

Starling

The fintech unicorn boasts gross lending over £2bn and deposits north of £5.4bn making it one of the most hotly awaited IPOs in the UK.

In 2022, Starling had its first full year of profitability after posting pre-tax profit of £32.1m.

The digital bank increased signs it was gearing up for an IPO after it began recruiting for a London-based role to work with senior management to “execute a successful IPO or other capital event”.

The job description also said it would “support the business in its steps towards its consideration of IPO readiness”.

John Mountain, the fintech’s interim chief executive, discussed a potential flotation and said whilst a location had not been confirmed, London would be a “natural home”.

Zilch

The UK-based buy now, pay later firm is expected to go public in the next 12 to 24 months after securing £100m in debt financing from Deutsche Bank.