innovation financeA trade group representing the UK fintech community has revealed that global fintech investment levels have fallen in 2022.
A study by Innovate Finance details how total global fintech investment will reach $92 billion in 2022. This total represents a 30% decrease compared to his 2021, when the industry attracted total investment of $130 billion. Capital invested in fintech in 2022 was spread across 5,263 deals. Compared to his 6,146 deals in 2021.
The US will top the fintech investment charts in 2022. The country received her over $39 billion from the fintech industry alone. Globally, the UK received her second largest total investment in 2022 with her $12.5 billion.
UK-based fintech companies received a total of $12.5 billion in 546 deals in 2022. The total represents an 8% decline compared to 2021 when the UK received $13.5 billion on his 583 deals in 2021.
Despite the decline, the UK has suffered one of the fewest declines in investment globally in proportion. London also continued to establish itself as the world’s leading fintech her hub in 2022. Through the year he received $10.2 billion in capital, and from 2021 he is down only 5%.
Investments in Singapore increased by 41% year-on-year, while major countries suffered losses. This success has moved Singapore from the 7th to 4th place in terms of total investment in the world.
The rest of the top five are India in third place with $5.5 billion and Germany in fifth place with $2.9 billion.
Could UK fintech companies struggle?
The global recession is occurring at a time of significant economic stress around the world. Rising interest rates have hit many industries, especially in the UK.Africa-based payment provider flutter wave was report To sky news Interested in acquiring an embedded banking platform Railsr.
After a successful Series C funding round in 2022, Railsr may reportedly still need intervention from the likes of Flutterwave. News like this highlights the struggles UK fintechs are going through, entering a period of consolidation rather than focusing entirely on growth.
It may not be the easiest year ahead for UK fintech companies as investment in the fintech industry is declining.
UK fintech continues to thrive despite global recession
Janine Hart, the CEO of Innovate Finance, commented on the findings. Hirt explains: This is a testament to the sector’s resilience and strength.
“According to our latest report, the UK still receives more investment in fintech than all of the following 10 countries combined and remains second in the world after the US. We must continue to work with , governments and regulators to build on this momentum and maintain the UK’s leadership as the global center for starting, scaling and growing fintech businesses.
“This is perhaps more important than ever as fintech continues to redefine financial services and provide greater financial support and access to consumers during the cost of living crisis.”
Paul Scullythe digital economy minister explained that the decline did not represent bad news for the sector.
he said: It brings jobs and big profits to our economy.
“In 2023, our focus will be on maintaining that lead by supporting start-ups, enhancing their digital skills and making the country an even more attractive destination for setting up, growing and investing in technology businesses. I have.”