The UK’s fintech investment is growing despite a global downturn

Investments in fintech in the UK grew by 24 per cent in the first half of this year, while global fintech investments went flat.

According to the latest fintech investment report from Innovate Finance, $ 59 billion (£ 49.13 billion) was invested in fintech globally in the first half of 2022 – the same amount that was invested during the first six months of 2021.

But in the UK, fintech investment reached $ 9.1 billion, representing a 24 percent year-over-year increase from the first six months of last year.

This follows a record-breaking 2021, which saw rising fintech values ​​across the board. Earlier this year, Innovate Finance reported that fintech investment in the UK increased by 217 percent in 2021 to reach a record high of $ 11.6 billion, while global fintech investment reached $ 102 billion – an increase of 183 percent from the previous year.

Innovate Finance noted that a market correction began to become apparent in April 2022, when venture capital investments began to decline due to rising interest rates.

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However, venture capitalists said that despite this temporary decline, investors are still keen to invest.

Janine Hirt, CEO of Innovate Finance, pointed out that British fintechs are still performing well, with fintech investments in the UK second only to the US globally. The UK also holds its place as the best European fintech hub, with Germany and France at a distance in second and third place.

“It’s amazing to see that British fintechs continue to secure outstanding levels of investment – this is a testament to the strength of our ecosystem, including our innovative entrepreneurs and founders, strong and diverse talent pool, and a supportive government and regulatory framework,” said Hirt.

“It is crucial that we now maintain this momentum. The UK currently receives more investment in fintech than the whole of Europe, second only to the world after the US. We must continue to work together – industry, government and regulators – to build on this leadership and ensure that the UK remains the best place in the world to start, build and scale a fintech business.

“This will positively impact not only the financial sector, but the entire population of the UK as a whole, who will benefit from new, innovative and more efficient products that provide greater economic well-being.”

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