What has Birmingham contributed to FinTech?
Birmingham is not only a city famous for the Industrial Revolution but also as a tech city, contributing to the FinTech landscape today.
18th Century
Birmingham is located in the heart of England, was the birthplace of the industrial revolution as well as home to the Quakers. Guided by ethical and community-led business principles, Birmingham is also the birthplace of Lloyds Bank, which contributed to the many ethical businesses in the 18th century.
Birmingham was also the birthplace of the first building society in the world – Ketley’s Building Society.
Along with business success, industries in Birmingham continued to prosper during this Century. Notably, various kinds of metalworking flourished. The development of a silver industry required an assay office. A local entrepreneur, Matthew Bolton, influenced a government leader in London and persuaded them to set up the first Assay Office outside London in Birmingham.
In 1759, Thomas Blockley (locksmith) gained fame for his method of making metal wheels by rolling iron sheets, providing the technological foundation for making coins in the 19th century. Almost 40 years later, in 1797, Matthew Boulton erected a complete coining plant in Lichfield with which he struck coins for the Sierra Leone and East India companies and for Russia. He also produced a new copper coinage for Britain.
The magic process of finance and technology has just started.
19th Century
Entering the Victorian period, the boom in industry and commerce grew significantly. Owing to its innovation and strong workforce, Birmingham became known as the City of a Thousand Trades. Both banking and technology advanced into a new era.
In 1836, Midlands Bank opened its doors. and was one of the Big Four Banking Group in the UK for most of the 20th century. In 1891, it merged later with the Central Bank of London forming London City and Midland Bank. A century later, Midland Bank was taken over by HSBC.
When we celebrate the relocation of HSBC UK from London to Birmingham, we should not forget that Birmingham has never lacked the gene of being a banking hub.
In 1850, Birmingham Mint was opened by Ralph Heaton II, using equipment from Boulton’s Soho Mint. It started producing tokens and coins in 1850 as a private enterprise in cooperation with the Royal Mint.
Three years later, the steel wire for sheathing the first successful transatlantic telegraph cable was made by Webster and Horsfall in Birmingham. This technology is what makes the internet possible today.
How marvellous Birmingham is for making this world a better place since the 19th century!
20th Century
Unfortunately, Birmingham was almost ruined many times due to the Wars and there was little growth in science and technology except in military manufacturing. However, entrepreneurship never dies and the inspiring spirit of local entrepreneurs continues to make this city proud in FinTech.
On 29th September 1916, after resistance from other banks and the Treasury, Birmingham Municipal Bank was founded. Although this bank did not achieve huge commercial success, it demonstrated the patriotism of Brummies in supporting their country during the World Wars.
Sir Adrian Cadbury, the successor of the Cadbury family, became the director of the Bank of England from 1970 to 1994 and of IBM from 1975 to 1994. He also pioneered the development of the Community Development Financial Institutions Fund in the UK which provided additional funding to the SMEs around the country.
