2021 saw record $11.6bn investment into UK fintech
Fintech investments in the UK increased by 217 per cent in 2021 to reach an all time high of $11.6bn (£8.58bn).
The total capital invested in fintech globally reached $102bn last year – a 183 per cent increase on the previous year.
According to the latest data from Innovate Finance, the UK remains second globally in terms of fintech investment, behind the US.
The US attracted $46bn in fintech capital last year.
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The UK’s $11.6bn total represents 11 per cent of all global capital invested this year, which is a slight increase from the 10 per cent figure in the previous two years.
“The impressive investment figures speak for themselves – it’s been a superb year for fintech in the UK, and indeed all around the world,” said Janine Hirt, chief executive of Innovate Finance.
“The huge increase in funding levels is testament to the world-class innovation and ingenuity that’s driving forward and positively transforming financial services.
“Fintech is delivering on all the biggest global trends and needs, including business productivity, consumer behaviours, financial wellness and inclusion, climate change solutions and cyber security – which is why it is such a magnet for investors.”
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The data also found that 61 per cent of all global capital has been invested in later stage growth funding, which Hirt says is a sign that the fintech sector is “reaching new levels of maturity”.
Innovate Finance pointed out that the latest research shows that fintech products are now being used by eight in 10 Brits, which demonstrates a huge level of market penetration.
However, the data also found that the female funding gap persists, with UK-based female fintech founders receiving just nine per cent of all capital invested.
“We are on the right trajectory in terms of levels of funding and now it’s time to also properly address the funding gap for underrepresented founders, if we are to create a truly sustainable and forward-looking sector,” Hirt added.
“We look forward to a continued strong fintech performance in the UK. The UK government and regulators have been quick to implement many of the investment and listings reforms recommended by the Hill and Kalifa Reviews, which make the UK even more attractive for global capital, and provide the basis for far greater investment by UK institutional investors.”
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