FinTech involves emerging industries that use technology to improve activities in financial services. Around 79 percent of the population are now using FinTech products in our daily lives, according to research late last year from Plaid and the Harris Poll.
The industry has particularly boomed during the COVID-19 pandemic, as around two-thirds of Britons now manage their finances online across an average of 2.8 products and services.
While a larger proportion of the population uses FinTech products to make payments or to invest or save.
Britons also use products and services fo.r budgeting or borrowing.
The number of deals and their volume of investment in FinTech businesses was recently made public.
According to a report by pro-Brexit think tank Facts4EU, the performance of UK PLC and the City showed a particular dominance in this field, as the UK alone raised almost half of all the FinTech investment in the whole of Europe.
Britain was out in front of the European Union and a clear second in the World only to the US.
According to the latest data, $24.3bn (£17.9bn) of investment was raised for FinTech companies across the European continent.
Of this total, the UK’s share was $11.6bn (£8.5bn), representing nearly half – 47.7 percent – of the overall amount.
Facts4EU’s report states: “The UK raised 2.6 times the funding raised in Germany – our closest competitor – and outperformed the top four EU economies combined.”
Germany ranked second in the list with $4.4bn (£3.3bn) investment raised, while France ranked in third with $2.3bn (£1.7bn)
Sweden took fourth spot with $1.7bn (£1.3bn) while the Netherlands ranked fifth with $1.6bn (£1.2bn).
In Britain’s first year free of the trade bloc, UK Fintech investment has skyrocketed, topping up more mega-deals than the rest of the EU countries combined.
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Of the top 20 FinTech mega-deals in Europe, 13 were in the UK, while Germany took second place with just three.
Mega-deals are ones worth over $100m+, and out of the world’s total 32 were from the UK.
This figure is more than the 31 from the rest of the continent.
The Government commended the UK’s FinTech performance in 2021, praising the growth in the sector.
Lord Grimstone, Minister for Investment described the year as being “first-class” for investments, and added that the growth seen in the FinTech industry is a “fantastic achievement”.
He said: “2021 was a first-class year for UK investment. We hosted the Global Investment Summit, which secured nearly £10bn investment into our industries of the future.
“And we proved that the UK fintech sector is more than a force to be reckoned with, maintaining our position as the number one fintech investment destination in Europe, and number two in the world, second only to the US.
“Thanks to our welcoming business environment and our world-class fintech ecosystem, we more than doubled 2020’s fintech inward investment figures, with more than 10 percent of deals worldwide landing on UK soil.”