UK fintech investment ranks second globally
The UK ranks in second place globally when it comes to fintech investment.
According to a new report from fintech trade body Innovate Finance, there was a 30 per cent decrease in the total amount of money invested in fintech worldwide between 2021 and 2022. $92bn was invested in fintech in 2022, compared to a record $130bn in 2021.
However, the UK has seen the smallest decrease, with $12.5bn invested in 2022, compared with $13.5bn in 2021. $10.2bn of this was invested in fintechs based in London.
The US retains the top spot in terms of fintech investment, with $39bn invested last year. Across Europe, the UK is still the top destination for fintech investment.
Read more: What will P2P look like in 2023?
“UK fintechs are holding the fort in securing great levels of investment in challenging economic times, a testament to the resilience and strength of our sector,” said Janine Hirt, chief executive of Innovate Finance.
“Our latest report shows that the UK is still receiving more investment in fintech than all of the next 10 European countries combined, and remains second in the world only to the US.
“We must continue to work together with industry, government and regulators to build on this momentum and maintain the leadership of the UK as a global centre to start, scale and grow a fintech business.
Read more: Fintech among most popular sectors for Seedrs investors
“This is perhaps more important now than ever before as fintech continues to redefine financial services and provide greater financial support and access to consumers during the cost of living crisis.”
Despite a global slowdown in fintech investment volumes, Singapore saw a massive 41 per cent increase in fintech investment, year on year, bumping it up from seventh to fourth position.
Meanwhile, China and Brazil both fell down the global rankings with drops in investment of 65 per cent and 57 per cent respectively from 2021.
Read more: CrowdProperty credits Birmingham base for second year of profits