Fintech Funding Falls 30% Worldwide to $95b
- In the UK, the slump was less painful, with an 8% decrease.
- Publicly-listed fintech companies fared worse than tech and finance firms.
Fintech funding across Europe and Asia slumped visibly in 2022, according to the newest industry data from Innovative Finance. The latest report focused on the UK's fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term industry showed an 8% slump in overall funding on the Island and 30% worldwide.
Fintech Funding Goes Down in the UK
According to the press release from Monday, the fintech sector in the UK attracted $12.5 billion in 2022, compared to $13.5 billion reached a year earlier. The decade-long rapid growth of the industry backed by venture capital has been halted by rising interest rates and market shocks caused by the war in Ukraine.
The $10.2 billion alone went to fintech companies located in London. Although the number is 5% lower than in 2021, it shows the City's clear dominance as the country's primary financial technology hub Hub A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method Read this Term.
"London's fintech industry has consistently proven itself to be both robust and ambitious in the face of economic challenges. As businesses brace for a turbulent 2023, fintech firms can play a vital role. Our industry can and will bounce back quickly, driving growth, job creation and enabling businesses to reach their full potential," Khalid Talukder, the Co-Founder of DKK Partners, said.
Despite declines in fintech funding in the UK, depreciation was far less painful than in other parts of the world. Global support for the industry shrank by about 30% to $95 billion. The total number of completed investments fell from 6,146 to 5,263.
Not a Good Time for Fintechs?
In addition to falling investment numbers, deteriorating conditions for the fintech industry is visible on the stock market charts. The sector fared worse than finance and tech companies, looking miserably against an already weak 2022.
Greater sensitivity to higher interest rates, a shift away from excessive risk and the fallout from pandemic-era catalysts have meant that investors are no longer looking at the financial innovation industry as a potential money-maker.
The Global X Fintech ETF, which tracks companies such as Adyen and Block, is down 52% year over year (YoY). By comparison, the financial sector of the S&P 500 Index slid 12% and the Nasdaq Composite Index, the benchmark for technology companies, fell 33% YoY.
According to the Wall Street Journal, other indexes and funds focused on the fintech industry looked even worse. Fund manager Cathie Wood 's ARK Fintech Innovation ETF fell 65% YoY, and the F-Prime Fintech Index gave up 71% of its value.
Fintech funding across Europe and Asia slumped visibly in 2022, according to the newest industry data from Innovative Finance. The latest report focused on the UK's fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term industry showed an 8% slump in overall funding on the Island and 30% worldwide.
Fintech Funding Goes Down in the UK
According to the press release from Monday, the fintech sector in the UK attracted $12.5 billion in 2022, compared to $13.5 billion reached a year earlier. The decade-long rapid growth of the industry backed by venture capital has been halted by rising interest rates and market shocks caused by the war in Ukraine.
The $10.2 billion alone went to fintech companies located in London. Although the number is 5% lower than in 2021, it shows the City's clear dominance as the country's primary financial technology hub Hub A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method Read this Term.
"London's fintech industry has consistently proven itself to be both robust and ambitious in the face of economic challenges. As businesses brace for a turbulent 2023, fintech firms can play a vital role. Our industry can and will bounce back quickly, driving growth, job creation and enabling businesses to reach their full potential," Khalid Talukder, the Co-Founder of DKK Partners, said.
Despite declines in fintech funding in the UK, depreciation was far less painful than in other parts of the world. Global support for the industry shrank by about 30% to $95 billion. The total number of completed investments fell from 6,146 to 5,263.
Not a Good Time for Fintechs?
In addition to falling investment numbers, deteriorating conditions for the fintech industry is visible on the stock market charts. The sector fared worse than finance and tech companies, looking miserably against an already weak 2022.
Greater sensitivity to higher interest rates, a shift away from excessive risk and the fallout from pandemic-era catalysts have meant that investors are no longer looking at the financial innovation industry as a potential money-maker.
The Global X Fintech ETF, which tracks companies such as Adyen and Block, is down 52% year over year (YoY). By comparison, the financial sector of the S&P 500 Index slid 12% and the Nasdaq Composite Index, the benchmark for technology companies, fell 33% YoY.
According to the Wall Street Journal, other indexes and funds focused on the fintech industry looked even worse. Fund manager Cathie Wood 's ARK Fintech Innovation ETF fell 65% YoY, and the F-Prime Fintech Index gave up 71% of its value.