Fintech in the UK received $12.5 billion in investment in 2022, 8% less than the previous year.
Research released this week by Innovate Finance, an independent industry body representing the UK fintech community, found the decline was surprisingly resilient compared to the global average, where investment activity fell by 30%. It shows the ecosystem.
As in previous years, only the US attracted more FinTech investment than the UK, bringing in more than $39 billion in total. India rounded out the top five with $5.5 billion, Singapore with $4 billion and Germany with $2.9 billion.
Moreover, the $12.5 billion raised by UK-based firms in 2022 will exceed the FinTech investments secured by 10 European countries since then combined.
As a global financial hub, London holds the majority of UK fintech capital, attracting $10.2 billion in 2022, down 5% from the previous year. In fact, the London-based company has secured two of his five most valuable fintech funding rounds of the year.
One of them is FinTech unicorn Checkout.com, which announced a $1 billion Series D round exactly one year ago on January 12th. About a month later, his wealth management platform FNZ announced a $1.4 billion funding round to accelerate its global expansion.
However, as the macroeconomic crisis worsened last year, companies were unable to fully guard against a global slowdown in venture capital (VC) investment, testing the resilience of the local fintech sector.
In fact, Checkout.com was forced to cut its internal valuation by 72% in December after VC activity plummeted in the second half of the year.
UK government supports industry
Macroeconomic headwinds aside, a strong culture of innovation, an established financial services sector, and an ongoing flow of talent and ideas across the country’s diverse technology sectors have helped propel the UK’s leading position in the global fintech scene. continue to contribute to
Commenting on the latest Innovate Research findings, the country’s digital economy minister, Paul Scully, said:
He said that in 2023, the country will “maintain its lead by supporting startups, boosting digital skills and making the country an even more attractive destination for setting up, growing and investing in technology businesses.” We are focused,” he added.
The government has taken a proactive stance, seeking to attract investors and foster the fintech sector by signing memorandums of understanding with other countries to facilitate digital trade and promote cooperation in this area. I have tried.
In the latest example of such an international agreement, the government on Monday (9 January) signed a memorandum of understanding with the Thai Securities and Exchange Commission to promote cooperation on fintech and sustainable finance.
Subscribe daily for all PYMNTS EMEA coverage EMEA Newsletter.