Despite a global slowdown in fintech investment in the first half of this year, UK fintechs received almost a quarter more funding compared to the same period of 2021.

The data was released in a report by Innovate Finance, the industry body representing the UK’s fintech community.

According to the group’s findings, on a global scale, total capital invested into fintech reached $59bn in the first half of the year – flat year on year compared to 2021.

The capital was spread across 3,045 deals, slightly fewer than 2021, which saw 3,401 deals in the first half of the year.

The UK’s performance bucked the global slowdown. It recorded a 24% year-on-year increase from 2021. UK-based fintech received $9.1bn in investment spread across 294 deals compared to $7.3 bn across 375 deals in the first half of 2021.

Some countries have seen notable drops in investment in the first half of 2022 including Mexico, the Netherlands, South Korea, and China, which all fell down the global rankings.

The value of the top five biggest deals globally in the first half of 2022 was $5bn, with the UK’s Checkout.com making the list. The largest deals from highest to lowest were for FNZ ($1.4bn), Trade Republic ($1.2 bn), Checkout.com ($1bn), Ramp ($748m) and Coda Payments ($690m).

Overall, the US received the most investment in the first half of 2022, bringing in $25bn in fintech capital, with the UK firmly in second place with $9.1bn, rounded off by India ($3.9bn), Germany ($2.4bn) and France ($2.3bn).

Janine Hirt, CEO of Innovate Finance, said: “It is fantastic to see that UK fintechs are continuing to secure outstanding levels of investment – this is a testament to the strength of our ecosystem, including our innovative entrepreneurs and founders, strong and diverse talent pool, and a supportive government and regulatory framework.

“It is critical that we now keep up this momentum. The UK is currently receiving more investment in fintech than all of Europe, second only in the world to the US. We must continue to work together – industry, government and regulators – to build on this leadership and ensure the UK remains the best place in the world to start, build and scale a fintech business.

“This will positively impact not only the financial services sector but the entire population of the UK as a whole who will benefit from new, innovative, and more effective products that drive greater financial wellness.”

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Economic Secretary to the Treasury, Richard Fuller said: “UK fintech is a fast-moving and exciting sector and through their innovative approach firms are driving the government’s vision to embrace new technology and ideas – helping to grow the economy and widen consumer choice.

“It’s great to see that the UK remains Europe’s leading hub for fintech – only second to the US globally – with almost half of all of European fintech unicorns based in the UK.”

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