FinTechs: UK the Epicenter of Fintech in Europe, says Report
The fintech sector in the UK raked in a record $4.9 billion in investments during 2019, despite political turmoil from Brexit.
During 2019, the UK proved comprehensively that it was the fintech capital of Europe. Brexit or not, fintechs in the UK ranked number one in Europe and second globally by attracting investments of $4.9 billion.
In terms of ticket size, the UK’s $800 million Greensil Capital ranked second worldwide, behind number one Paytm ($1.7 bn, India), and ahead of number three Chime ($500m, USA), according to a report by Innovate Finance, a trade body.
UK fintechs trump Europe
Not only did fundraising by UK fintechs rise 38% in 2019, but their tally was also leagues ahead of European counterparts. Nevertheless, aggregate fintech investment in Europe rose 49% year on year.
The UK tally of $4.9 billion was more than three times the amount Germany received in second place at $1.3bn, and six times more than Sweden in third at $778m.
In another indication of the UK’s supremacy, it cornered seven of the ten biggest deals in Europe in 2019.
“It’s immensely encouraging to see the year on year growth in investment figures that the key areas of the global fintech industry are attracting, and we should be proud of the unique position the UK has carved out on an international level,” said Charlotte Crosswell, chief executive of Innovate Finance, as reported by CITY A.M.
“We are a world-leading fintech hub, and as the figures reveal, the epicenter of fintech in Europe – all of which is a testament to the fact that the UK is a leading destination to start and scale a fintech business.”
What seems to be working for UK fintechs is a flexible regulatory regime, a very supportive role from government, and the resulting inrush of investments.
Related Story: JPMorgan Chase May Buy Stake in UK FinTech 10x Future Technologies
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