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KPMG Report says Investment in UK Fintech Outstrips US and China

Theo Priestley

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UK Fintech Investment

According to KPMG, investment in UK fintech to the tune of £12.2 billion has been made in the first half of 2018 so far.

Despite concerns over Brexit investment continues to pour into the UK fintech scene, with four of Europe’s top ten deals taking place in the UK. These were funding rounds by Revolut, eToro, Flender, and MoneyFarm worth a respective £190.3 million, £76 million, £45 million and £54 million. However, the largest deal which took the biggest share of the total investment was the £9.8 billion acquisition of WorldPay by US counterpart, Vantiv.

KPMG Fintech’s global co-lead, Anton Ruddenklau, commented saying: “The year has got off to an exceptionally strong start for the fintech sector.

“In addition to the bullish levels of investment the UK has attracted, our fintech sector has also benefited from the government’s continued support with the launch of the Fintech Sector Strategy.”

UK Fintech Gets the Lion’s Share

The UK fintech scene received more investment than the US for the first half of 2018, and topped other countries across Europe by taking 61% of the total $26 billion invested.

“The UK continues to lead the charge for fintech investment in Europe — representing half of the top 10 deals during H1’2018. Fintechs are increasingly applying for and receiving banking licenses — and we anticipate consolidation in that space in particular as some of the traditional financial institutions make strategic acquisitions to position themselves for growth.” Ruddenklau added.

The numbers in brief;

  • In H1’18 global investment in fintech companies hit $57.9 billion across 875 deals
  • Global investment to date in 2018 has already exceeds last year’s annual total
  • Fintech investment in the Americas reached $14.8 billion across 504 deals
  • 96% of deal value in the Americas came from the US
  • Investment in fintech companies in Europe hit $26 billion across 198 deals
  • Investment in fintech companies in Asia hit $16.8 billion across 162 deals

Blockchain investments continued to show strong growth as a sub-sector, and included more than $100 million investment in R3 and Circle Internet Finance in the US, and $77 million to Ledger in France.

Theo Priestley

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