Author Osaemezu Ogwu is a cryptocurrency journalist with several years of experience in the crypto-verse.
Venture capital and private equity investment into the fintech sector of London and the UK in general has risen 38% year on year and reached $4.9 billion.
The United Kingdom (including London) fintech ecosystem has reached a new record of $4.9 billion in investment. And as a result, it has managed to secure its position for another year as the number one destination for European fintech investment. Only the United States has a better record, according to the recent report from City AM, London.
Exclusive data from Innovate Finance has revealed that the UK recorded a 38% increase in venture capital and private equity investment into its fintech sector. The figure more than tripled the $1.3 billion second-placed Germany received and six times ahead of the $778 million Sweden received in the third position.
Nevertheless, the UK is still playing catch-up to the USA on the list of the top global destinations for fintech investment. The United States retained its position as the number one on the list with a record of $16.3bn from 1,095 deals. The third position is occupied by India, which has $3.9 billion for fintech investments. At the same time, China fell to the fourth spot with $1.8 billion following a 93% decline year on year.
Commenting on the report, chief executive of Innovate Finance, Charlotte Crosswell noted:
“It’s highly encouraging to witness the year on year growth in investment figures that the major areas of the global fintech industry are attracting, and we have to be proud of the unique position the UK has carved out on an international level.”
“We are a world-leading fintech hub, and as the figures depict, the epicentre of fintech in Europe – all of which is evidence to the fact that the UK is a leading destination to start and scale a fintech business,” added she.
Notwithstanding, disproportionately low levels of funding were reported by the UK for female founders and chief executives, even with an accelerated push for diversity in technology and investment within the past few years. However, just 10 percent of all investments in the UK arrived from female-led enterprises.
Other News from FinTech Sector
Meanwhile, the UK is expected to witness even more investment into its fintech sector this year. Coinspeaker reported on Monday, January 27th, 2020 that Visa, BNP Paribas and a host of other prominent companies invested $80 million into fintech startup, Currencycloud. The funds are allocated to back the company which powers popular fintech apps that include Monzo, Starling, and Revolut.
In another development, Mastercard also announced a partnership with SoFi, a digital personal finance company, in a program that will benefit SoFi’s almost a million customers utilizing their cash management accounts. Customers will enjoy peer-to-peer (P2P) functionality, high-yielding interest, reimbursements from ATMs, and smartphone-enabled check deposits, the report stated on Friday, January 24th, 2020.