UK fintech funding hits £7.6bn in first half of 2022 amid global slowdown

fintech funding UK

UK fintech companies received $9.1bn (£7.6bn) in funding during the first half of 2022, the second-largest globally after the $25bn (£20.8bn) raised by US firms.

Data compiled by industry body Innovate Finance shows that for the first half of the year global fintech investment reached $59bn (£57.6bn).

The report shows that UK fintech is bucking the global trend of a slowdown in investments. While global growth remained flat, the UK reported a 24% year-on-year increase during the period.

It comes after a record 2021 for UK fintech where investment reached a total of $11.6bn (£8.56bn).

“It is critical that we now keep up this momentum. The UK is currently receiving more investment in fintech than all of Europe, second only in the world to the US,” said Janine Hirt, CEO, Innovate Finance.

Globally the top five deals totalled $5bn (£4.1bn). It included $1.4bn to London-based fintech FNZ and $1bn (£730m) to payments firm Checkout.com.

Following in the footsteps of the UK, India-based fintechs raised $3.9bn (£3.2bn), Germany-based firms secured $2.4bn (£2bn) and those in France pocketed $2.3bn (£1.9bn).

Hirt added: “We must continue to work together – industry, government and regulators – to build on this leadership and ensure the UK remains the best place in the world to start, build and scale a FinTech business.”

The data follows a review backed by the London Stock Exchange that addresses declining growth and investment in UK fintech startups.