UK Retains Fintech Dominance Despite Funding Slump
(11 January 2023 – United Kingdom) The United Kingdom’s (UK) fintech industry body, Innovate Finance, found that despite an eight percent slowdown in investment, Britain retained its position as the leading nation for fintech in Europe and the second best globally behind the US.
According to Innovate Finance’s annual report, the UK’s fintech sector attracted US$12.5b worth of funding, down from a stellar year in 2021 which saw US$13.5b sunk into British fintech firms.
London based fintechs attracted the lion share of investment with US$10.2bn invested in 2022, down only five percent from 2021 amid a sharp global slump.
A pull back in UK fintech funding was markedly less than the global average as total global investment slumped by nearly a third to US$92b, with the total number of investment deals globally tumbling from 6,146 to 5,263.
“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” stated Innovate Finance CEO, Janine Hirt.
“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.”
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