Global Fintech Investment Dropped 30% in 2022
- In 2022, total capital invested in FinTech globally will reach $92 billion, a 30% decrease from 2021
- UK FinTech sector receives $12.5bn in investment, down 8% from 2021, and a much smaller drop than most other FinTech hubs
- The latest data from Innovate Finance reveals that the UK remains second globally in FinTech investment, behind the US, and remains the top destination in Europe
New data of Innovate Finance, the industry body representing the FinTech community in the UK, reveals the global FinTech investment trends of 2022.
By 2022 levels of global investment in #FinTech fell due to economic downturn.
The UK maintains its lead and has a 2nd position globally for investments in FinTech, behind only the USA 💪📈
Read more here ⬇️
🔗 https://t.co/SeDwvnKZ10#Investment Report #FinTechNews— Innovate Finance (@InnFin) 9 January 2023
The total capital invested in FinTech globally reached $92 billion in 2022, a decrease of 30% compared to 2021, when the total investment amounted to $130 billion. The capital invested in FinTech in 2022 was spread over 5,263 deals – compared to 6,146 deals in 2021.
Overall, the US received the most investment in 2022, bringing in over $39 billion in FinTech capital, with the UK in second place with $12.5 billion, rounded out by India with $5.5 billion, Singapore with $4 billion and Germany with 2.9 billion dollars.
UK-based FinTechs received $12.5 billion in investment across 546 deals compared to $13.5 billion across 583 deals in 2021, down just 8% from 2021. Notably, this is a much smaller decline than the global average, with many other countries, including the United States, suffering a double-digit decline in investment. London continues to be a leading global FinTech investment hub with $10.2 billion received in 2022, down just 5% from 2021.
The global decline comes with some exceptions, including Singapore, which recorded a 41% increase in investment from 2021.
Some countries have witnessed notable declines in investment in 2022, including China and Brazil, both of which fell down the global rankings with declines in investment of 65% and 57% respectively from 2021. However, other countries have jumped in the rankings, including . France from 11th to 6th and Singapore from 7th to 4th.
The value of the 5 largest deals globally in 2022 was over $5 billion or 6% of total global investment in FinTechs, with FNZ receiving $1.4 billion, the largest investment in 2022. The other four largest deals from highest to lowest included Trade Republic, Checkout.com, Klarna and Ramp. Two of the top five deals, FNZ and Checkout.com, took place in the UK.
Janine Hirt, CEO of Innovate Finance, said:
“UK FinTechs are holding the fort in securing high levels of investment in challenging economic times, a testament to the resilience and strength of our sector.
Our latest report shows that the UK continues to receive 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 UK’s leadership as a global center for starting, scaling and growing a FinTech business. 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.”
Digital Economy Minister Paul Scully said:
“Despite global headwinds, UK FinTech firms showed great resilience last year and helped boost the UK’s status as a world leader in technology – delivering jobs and huge benefits to our economy.
“In 2023, we focus on maintaining our leadership by supporting start-ups, increasing digital skills and making this country an even more attractive destination to establish, grow and invest in technology companies.”
Source: Innovate Finance
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