The UK retained its European dominance in fintech last year despite global investment in the industry decreasing in 2022 amid the economic slowdown, new data has found.
The UK’s fintech industry body, Innovate Finance, found in its annual report that despite a slowdown in investment, Britain retained its position as the leading nation for fintech in Europe and the second best globally, behind the US.
Global fintech investment reached $92bn (£75.6bn) in 2022, a decrease of 30% from the year prior. While the UK’s numbers also saw a reduction from the illustrious heights of 2021, the dip was much smaller than the average for fintech hubs.
UK fintech received around $12.5bn (£10.2bn) in investments last year, an 8% drop from the record-breaking 2021.
“UK fintechs are holding the fort in securing great levels of investment in challenging economic times, a testament to the resilience and strength of our sector,” said Innovate Finance CEO, Janine Hirt.
“Our latest report shows that the UK is still receiving more investment in fintech than all of the next 10 European countries combined and remains second in the world only to the US.”
The US held the number one spot for fintech investment, raising $39bn, while India came in third at $5.5bn.
“We must continue to work together with industry, government, and regulators to build on this momentum and maintain the leadership of the UK as a global centre to start, scale and grow a fintech business,” Hirt added.
“This is perhaps more important now than ever before as fintech continues to redefine financial services and provide greater financial support and access to consumers during the cost of living crisis.”