Monday Interview: Northern digital infrastructure according to Richard Carter of Nostrum

“Running your business, you get all the spoils but all the risk too. It’s about finding a balance as an entrepreneur,” said Richard Carter, chief executive of financial technology business Nostrum.

If anyone would know, it would be Mr Carter, having completed a management buy-out of the business, in 200.

He joined the company when in 2002, and when the management team acquired it, moved Nostrum to Harrogate from the south.

The Harrogate business has gone from strength to strength since then. 

In the last three years it has grown, with turnover rising 29% to £9m in 2014.

Nostrum was also named one of the UK’s fastest-growing companies, having been ranked in The Sunday Times Hiscox Tech Track 100.

Although the firm as it is now was conceived in the midst of the recession, Mr Carter said it ended up becoming a period of introspection. He said: “We invested in self service capabilities and web APIs at a technical level. If we hadn’t made that decision in lean times, we wouldn’t be here.

“Now smartphones are ubiquitous and we have more of a connected community. People can and do work anywhere, and so do our customers.”

The firm was based in Worthing, but along with business partner Alex Stephen,  decided to move the firm home to Harrogate.

“We understood recruitment in our area,” said Mr Carter. “We found people we’d worked with before, that we knew could provide consistency in output. Even though we were in the recession, we got the right people at the right time.”

Now the firm has 85 staff, all based in Harrogate, and Mr Carter still gets to take his kids to school.

Mr Carter is certainly a man with a plan as he continues to grow the business. He said: “There is a lot of scope for future growth as the lending and banking industries grow, with increased customer self-service.

“We have strong recurring revenues, and know how much we can reinvest over the next 3-4 years to continue to grow. We’re intending to expand our geographical market,” said Mr Carter, but always keep that Yorkshire base.

There are intentions to expand into the US through acquisitions. Nostrum want to increase their mobile technology and data analytics with the acquisition of an established business.

But, said Mr Carter: “You can’t just go over there and plant a flag in the ground. It has to be the right client in the right country, and we wouldn’t buy a startup. We’d want a more evolved business to share technology with.”

As with many sectors, the challenge is getting young people into the company, whether that be in a US business or at home.

Mr Carter said: “It comes down to what you provide as an employer. We’re a great technology firm with a strong growth story that can provide job security and certainty.”

The firm has a mantelpiece-full of awards, and has been listed on the Deloitte fast 50, which Mr Carter said allowed them to meet other technology firms in different markets.

“It also helps for recruitment, raising profile to recognise growth. Leeds is known for its professional services, but not a lot of people see it as a centre of UK Fintech. But fintech is basically invisible up here,” he said.

“Nostrum is bigger as a brand in London, due to the large finance sector in London. It creates an ecosystem, whereas up here we don’t act together to stimulate our ecosystem.”

Tech North is still at its early stages, and along with technology startup accelerator Dotforge, said Mr Carter, it will go a long way to supporting to supporting digital infrastructure in the North.

But, he said: “The Northern Powerhouse is too big. It includes every big city in the North. It gets confusing and then it becomes political.

“With a lot of technology employees, it ultimately comes down to quality of life, compared to the rat race in London.

“The Northern Powerhouse won’t happen unless we all pull together to attract talent.

“Though we could do with improved infrastructure, there’s a strong rationale for technology businesses moving up North; the salaries, to cost of living and quality of life and we will help advertise those to attract the best talent we can.”