Ryan FowlerRecent data analysis by AptPayment reveals that over the last five years, 32.2% of new finance companies have shut down. Out of the 194,081 finance companies started, about 62,531 have gone into administration, liquidation, or are now dissolved.
The study, using Companies House data, shows banks have the highest business mortality rate at 69%, with central banking-related firms close behind at 62.5%. Companies in financial market administration, building societies, and fund management also faced significant closure rates at 57.4%, 57.3%, and 55.75%, respectively.
Conversely, other holding companies, life and non-life reinsurance, construction holding, and mortgage finance entities showed greater resilience, with closure rates ranging from 15.95% to 28.57%.
A spokesperson for AptPay commented on the implications of this data: “Our research gives entrepreneurs looking to get into the financial services industry a clear idea of how successful their business is likely to be. But more than that, it gives business owners a real indication of how competitive certain sectors are.”
