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Could now be a good time to invest in Fintech?

30/09/2021

The latest “Pulse of Fintech” report from KPMG shows that Fintech-focused VC investment in the UK reached a record high in the first half of 2021 – with nearly £18bn of deals in total. Globally, meanwhile, Fintech has seen $52bn of M&A deals in the first half of 2021, compared with a full-year total of $44bn in 2020, and $41bn in 2019. 

The picture appears rosy – so is now a good time to invest in the Fintech sector? 

 

Looking to London

Figures show that London is home to around 3,018 Fintech firms – a figure said to be higher than that of any other city in the world. What’s more, the city has the infrastructure in place to support the growth of Fintech firms. A 2020 report from The Global City shows that London boasts over 90,000 financial and professional businesses, providing a huge pool of both clients and partners for Fintech firms. 

London’s Fintech dominance means that the city attracted 91% of the UK’s Fintech capital investments in 2020 – $3.8bn across a total of 310 deals. But what does the future hold – for both London, and the wider UK? 

 

A future focus

The UK’s appetite for Fintech doesn’t appear to be waning. EMA and UK head of financial services at KPMG, Karim Haji, believes that an increased focus on digitalisation as a result of COVID-19 has played a large part. He says, “This timing, together with the UK’s reputation as a historic financial services sector and ongoing work to nurture Fintechs, from testing through to listing, makes the UK a magnet for investment.”

What’s more, with a greater number of Fintechs firms now focusing on ethical and sustainable practices, Louise Brett, Lead Fintech Partner at Deloitte, says: “the next wave of FinTech will strengthen our moral wellbeing as well as our wallets”.  

For Fintech in the UK, the future looks bright. 

 

“Stable Rise Limited is not authorised or registered by the Financial Conduct Authority. The marketing materials are not intended to provide financial advice nor promote any individual financial products.”

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