The fintech companies in the UK attracted £3 billion ($4.1 billion) investment in 2020, the highest figure across Europe. The mentioned amount was invested across a total of 408 deals last year. The US remained the leader in global fintech capital raised as the American companies attracted nearly $22 billion funding in 2020.
According to a report by Innovative Finance, global fintech investment reached $44 billion in 2020, a 14% jump compared to 2019. The report says that the UK is behind the US in the global fintech investment ranking.
Indonesia ranked third with nearly $3.3 billion investment, followed by India in fourth with around $2.6 billion fintech funding. Apart from the UK, countries like Germany and Sweden did well in the European region. Germany attracted $1.4 billion investment across 71 deals, a 50% jump compared to 2019, while Sweden secured $1.6 billion in funding.
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“Given the tough and turbulent year we’ve experienced, it’s very encouraging to see strength and resilience in the global FinTech sector’s ability to raise capital. Now more than ever, we should celebrate the strong position the UK has carved out at an international level. We are a world-leading financial technology hub, and as the figures reveal, the epicenter of FinTech in Europe, despite the challenges thrown our way,” Charlotte Crosswell, CEO of Innovate Finance mentioned in the official report.
Impact of Coronavirus on Fintech Funding
COVID-19 had a significant impact on the capital raised in the fintech sector last year and reduced the speed of growth due to economic uncertainties. Despite the challenges, countries like Indonesia, the US, and Germany reported significant growth last year.
“Among global deals, the top three FinTech investment rounds were secured by Gojek in Indonesia ($3 billion), Stripe ($850 million), and Chime ($700 million) in the US. Investment backing for female founders in UK FinTech grew to $720m in 2020, accounting for 17% of total investment, an increase from 11% of the total in 2019,” the official report states.