UK investment soars as London becomes global fintech hub
UK fintech investment has grown by 500% since 2017, compared to 170% in the US and 133% in Europe.
Fintech firms in London saw nearly as much investment in Q1 2020 ($114 million) as they did for the entirety of 2017. This highlights a rise in significance for the sector in the UK’s capital city.
According to research published by Robert Walters and carried out by Vacancysoft; nine deals worth over $1 million were made in the UK in Q1 2020 alone. In the US, six of these deals were made whereas Europe only made four.
Tom Chambers, senior manager, technology at Robert Walters’ London office, said:
“Fintechs were not initially seen as direct ‘competition’ to traditional banks – with their products and services differing vastly,”
“However, over the past 12-18 months we’ve seen fintech’s apply for banking licenses which means they can now expand their offering to include overdrafts, guarantee deposits, and the ability to set-up direct debits.
“Perhaps the most drastic change was governments swift action to ‘shake-up’ traditional lending and allow fintech companies to be an official loan provider for the government COVID-19 bailout scheme – introducing fintechs to the masses.
“London has done a stellar job in proving its return on investment when it comes to VC funding – and it is no surprise that the City received 80% of the total fintech funding that comes into Europe.”