200% jump in investment funding for Scottish fintech firms
FinTech Scotland is announcing, on its fifth birthday, a further increase in the number of entrepreneurial fintech SMEs as well as a record new investment funding for the year.
Over the past 12 months, Scottish fintechs received over £305 million in funding to support their growth and development, representing an increase of over 200% on the previous year
Over 60% of funding was raised by fintech SMEs focusing on payment and data innovation, while other innovation categories that saw significant investment were wealth management solutions and financial regulation.
In addition, the number of Scottish fintech SMEs increased to 211 in 2022, an increase of 13% over the year, driven by both new fintech start-ups and international firms setting up in Scotland.
Commenting on another record year, CEO Nicola Anderson said: “I am continually inspired by the progress achieved by fintech entrepreneurs who continue to accelerate innovation, change and growth across the cluster. The record levels of investment in 2022 reinforce the value of fintech innovation and drive us to continue to drive cluster excellence, building on the recognition we achieved in 2022 and the role we play in contributing to the growing wider UK fintech ecosystem.
As we move into 2023, I am excited to develop the opportunities with entrepreneurs, industry and academic partners, Scottish Enterprise, Innovate UK, the Financial Conduct Authority along with other clusters across the UK as we execute our ground-breaking research and innovation roadmap.
Adrian Gillespie, chief executive of Scottish Enterprise, added: “The growth of Scotland’s fintech sector shows what can be achieved when all partners work together to create an ecosystem that is attractive to companies and investors.
“FinTech Scotland has made a huge contribution to developing our country’s fintech sector since its inception. We look forward to continuing to work in partnership with FinTech Scotland and all other stakeholders to deliver even more financial opportunities in this vibrant sector over the coming year.”
FinTech Scotland has for the coming year confirmed its strategy to continue to leverage cluster excellence credentials to drive innovation and build on its valuable collaboration with fintech hubs around the UK.
This will also include a focus on supporting fintech SME scale-up through increased collaboration with the thirty FinTech Scotland partners as well as major financial initiatives with the Smart Data Foundry and a new Competence Center for Innovation in Financial Regulation.
