London has increased several Fintech investments
The financial technology sector has been one of the hottest investment areas in recent years. London has been a leading global hub for fintech investment, with more deals and more money raised than any other city. MoneyTransfers.com reports that London has successfully attracted the most fintech investment, reaching $3.1 billion in 2022.
The UK’s fintech sector is second to none in Europe and continues to grow at an incredible rate. London is the natural home for many of these businesses due to the city’s deep pool of talent, its global reputation and the supportive ecosystem that exists here.
MoneyTransfer CEO Jonathan Merry said “The UK government’s recent decision to provide tax relief for early stage companies will only fuel the fintech sector’s growth and make the country even more attractive to entrepreneurs and investors.”
Compared to the $3.1 billion raised in London, the Bay Area was close behind with $3.0 billion, followed by New York with $1.6 billion. Singapore ($1.2 billion) was fourth, with Bengaluru ($0.8 billion) and the Greater Boston region ($0.6 billion) completing the top six cities.
Merry continued, “The UK government’s recent decision to provide tax relief for early stage companies will only fuel the fintech sector’s growth and make the country even more attractive to entrepreneurs and investors.”
Compared to the $3.1 billion raised in London, the Bay Area was close behind with $3.0 billion, followed by New York with $1.6 billion. Singapore ($1.2 billion) was fourth, with Bengaluru ($0.8 billion) and the Greater Boston region ($0.6 billion) completing the top six cities.
How London maintains its top spot
The success of Fintech in the UK came from challenger banks. Challenger banks are digital banking apps only. They work efficiently with cloud-based infrastructure, built-in AI and agile frameworks. Again, they give users more accessible and faster access to banking services and financial products.
Firms such as Revolut and Starling Bank are household names among their tech-savvy consumer base. The firms have targeted millennials and Gen Z customers who embrace technology. Many of these customers have eschewed traditional retail banking in favor of these more user-friendly banking apps.
The UK is working hard to keep London at the forefront of the Fintech industry. The government is working on new visa pathways for foreign workers to help UK fintech firms. It is also looking into a CBDC and changing its market listing rules to improve the regulatory environment. In addition, financial authorities and businesses are joining forces to promote the use of Fintech.
The Middle East and North Africa are increasing in Fintech
Investments in FinTech across the Middle East and North Africa (MENA) have already passed $819 million in the first half of 2022. This is almost 14 times more than in 2016.
The demographic composition of the MENA area provides a significant window of opportunity. More than 60% of people are under the age of thirty. Moreover, the people living in MENA are technologically sophisticated and eager to adopt new digital methods. For example, in the United Arab Emirates (UAE), more than half of the population already uses digital wallets.
Public assistance and fintech-friendly rules also attract global players. For example, the UAE, Bahrain, Egypt and Saudi Arabia support the fintech ecosystem with free zones. In addition, they offer regulatory sandboxes, such as DIFC’s Innovation Testing License (ITL) and Egypt’s fintech sandbox. The UAE and Bahrain dominate crypto use and regulation in the region.
