Sunday 15 September 2019

UK fintech investment a bright spot amid Brexit gloom

More than £1 billion has poured into UK-based fintech companies since the referendum vote.

Man using phone
Man using phone

By Kalyeena Makortoff, Press Association City Reporter

Britain’s fintech firms are on track to raise record investment this year, signalling sector strength despite fears over Brexit’s effect on the economy.

More than $1.3 billion (£1 billion ) has streamed into UK-based fintech companies since the referendum vote, with $1.05 billion (£825.2 million) having been invested since January alone.

That is nearly double the amount raised during the same period – January to September – in 2016, and is more than 17% higher than the previous record of $896.45 million (£588 million) raised over that time in 2015, according to figures released by The Mayor of London’s official promotional agency London and Partners.

Silicon Roundabout

It has put the UK within the top three global fintech hubs, behind the US which raised $4.8 billion (£3.6 billion ) between January and September, and China which saw the sector’s firms raise $1.4 billion (£1 billion).

London alone attracted 90% of all venture capital investments into UK fintech this year, totalling £769.41 million.

London’s deputy mayor for business, Rajesh Agrawal, said: “London remains a world leader in fintech and the companies on this trade delegation are at the forefront of developing cutting edge financial technologies.

“The fact that we have seen over £1 billion worth of venture capital investment into London fintech companies since the EU referendum vote offers further proof that global investors still believe London will remain a leading fintech hub for many years to come.”

Mr Agrawal claimed that while Brexit poses “major challenges”, London’s position as a global financial centre and technology hub “cannot be replicated anywhere else”.

“This highlights the need for a Brexit which enables London to maintain its place at the heart of the single market, as the continent’s financial capital.”

Over the last five years, London has topped the tables of European companies when it comes to the total venture capital raised by fintech firms.

Fintech firms in the capital brought in £2.43 billion between September 2012 and September 2017 – more than Paris, Frankfurt, Berlin and Amsterdam combined.

Stockholm was the next successful fintech hub, having attracted £470.25 million over the past five years – followed by Berlin at £309.95 million, and Paris at £233.69 million.

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