Fintech funding within the UK has risen by 500% within the final three years, in comparison with 170% for the USA and 133% for Europe, analysis from recruitment agency Robert Walters has revealed.
Since 2018 the UK fintech market has outstripped the USA and Europe for funding offers.
Tom Chambers, senior supervisor – expertise (London) at Robert Walters, mentioned: “Fintechs weren’t initially seen as direct ‘competition’ to conventional banks – with their services differing vastly.
“Nevertheless, over the previous 12-18 months we’ve seen fintech’s apply for banking licenses which implies they’ll now increase their providing to incorporate overdrafts, assure deposits, and the power to set-up direct debits.
“Maybe essentially the most drastic change was governments swift motion to ‘shake-up’ conventional lending and permit fintech corporations to be an official loan supplier for the federal government COVID-19 bailout scheme – introducing fintechs to the plenty.
“As fintechs creep into conventional banking territory, and monetary providers proceed to embed expertise into their processes, the sectors stand to grow to be indistinguishable within the subsequent 12 months.”
In Q1 of this this 12 months, London fintechs have generated virtually as a lot funding ($114m) as they did for the whole 12 months of 2017 ($148m)– highlighting the importance of 2020 for the sector.
Fintech stays London-centric.
In 2019, the variety of investments into UK fintechs almost doubled to 96, nonetheless solely eight had been into regional companies (beneath 10%).