FinTech Investment
Scales New Heights

This is a third higher than the total investment secured across the whole of 2020 ($4.3bn) and it tops the highest full-year amount set in 2019 of $4.6bn by 26%. Globally, the UK ranks second to only the US which saw $26.7 billion invested across 940 deals. They are followed by Brazil (40 deals and $3bn), Germany (56 deals and $2.5bn) and India (132 deals and $2.2bn).

Investors appear confident that the growth and anticipated returns in the sector will continue to accelerate in the months and years ahead. The latest figures and continued positive sentiment are helping to cement the UK’s position as a leading global FinTech hub.

Alongside the private market, the year has also seen several public listings on both sides of the Atlantic. On the London Stock Exchange, international money transfer company Wise (formerly TransferWise) opted for a direct listing at a valuation of $11bn and the digital pensions platform PensionBee chose an initial public listing at a valuation of $500m.

In the US, UK headquartered payments group Paysafe listed on the New York Stock Exchange following its SPAC merger. 

M&A activity also continues to pick up with JP Morgan announcing its acquisition of the digital wealth management platform Nutmeg to support its intention to begin offering banking services to UK retail consumers. Other deals include Royal London, the UK’s largest mutual life, pensions and investment company, acquiring the financial advice fintech Wealth Wizards and Better, the US based digital mortgage lender, acquiring Trussle to further expand its reach within the UK.

The strong H1 investment figures come off the back of the Kalifa Review from the first half of the year, which set out recommendations for the future growth of the sector, and provided a roadmap to ensure long-term, sustained investment. We look forward to watching as the sector continues to reach new heights.