UK ranked second to US for fintech capital funding in 2020
Britain ranks second to the US in terms of total, capital investment in fintech for 2020, and is leading fintech in Europe, a new report reveals.
Figures released by a recent Innovate Finance report shows worldwide fintech investments topped $44bn in 2020, totalling 3,052 deals. The UK accounted for 408 of those deals, and $4.1bn in funding.
Investment grew by 14% and the US market accounted for $22bn. Findings showed the US attracted $22bn, an increase of 29%. Indonesia ranked third with $3.3bn, followed by India with $2.6bn.
But the UK dominated European investment, managing a total of 408 deals accounting for just under half of the total $9.3bn invested in the whole of Europe. Britain’s financial sector also handled more invested capital than France, Sweden, the Netherlands, Switzerland and Germany combined.
According to recent figures, the UK is uniquely placed to manage strong fintech industry growth. A 2020 report by The Global City shows the UK capital has an estimated 90,000 financial and professional firms and therefore provides a large client and partner pool for fintech firms.
Baring this out, 2020 showed that London-based firms attracted 91% of capital invested in UK fintech, receiving $3.8bn across 310 deals. Revolut secured the largest UK deal of $580m, closely followed by Molo with $343mn, and Monzo with $166m.
Innovate Finance’s report also showed 2020 investments for female-founded UK fintech enterprises increased by 11% in 2019. Capital grew to $720mn, making it 17% of the year’s investment.
Global City’s white paper, which draws on several top consulting sources, explains that the UK’s proposition for fintech is unique. Britain offers world-class talent, a forward-thinking approach to regulation, good capital access, and close to an innovative financial services sector.
“This ideal environment has put the UK at the cutting-edge of fintech innovation – from peer-to-peer lending to challenger banks, cyber, insurtech, regtech, AI, paytech, tech for good, and blockchain,” it states.
Additionally, fintech is more of an industry than a subsector in the UK as the financial services industry has welcomed its development in providing innovative services, products, and solutions. Fintech is also increasing the efficiency of current players and strengthening connections with financial centres across the world with bridges established between Hong Kong, China, South Korea, Singapore and Australia.
Fintech in Europe
Meanwhile, countries on the continent are far behind. For example, Germany ranked second in Europe, with 71 deals and $1.4bn of investment. Sweden ranked third with $1.3bn of capital raised, while France with $522m and Switzerland with $294m followed behind.
However, despite the UK’s strong positioning, the biggest global fintech deals of 2020 were secured in Indonesia by the payments platforms Gojek and Stripe and by US challenger bank, Chime, totalling $3bn, $850mn and 700mn respectively.
CEO of Innovate Finance, Charlotte Crosswell, said current market growth had been influenced by COVID-19. “The pandemic has created new barriers for many companies seeking funding, so it is all the more vital that we support our innovative companies to fuel their future success and growth.”
She added, “The upcoming FinTech Strategic Review is a key step on that path that will help to ensure long-term, sustained investment.”
The Ultimate FinTech & InsurTech LIVE Event
From October 12th-14th, 2021, BizClik’s FinTech & InsurTech event will bring together influential executives from around the world. Streamed live from Tobacco Dock, London, this three-day event will be an excellent way to finish the year strong, gaining the confidence your company needs to move forward into the future.
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Already confirmed speakers include Colin Payne, VP & NextGen FS Global Lead at Capgemini; Dipu KV, President and Head of Operations & CX at Bajaj Allianz General Insurance Company; Bryan Caroll, CEO at TNEX; and Lucy Demery, Managing Director at Barclays.
The event will include:
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Meet the Speakers
Each week, from now until the event, we’ll be announcing the latest speakers who are set to grace our physical or virtual stage, prepared to share their knowledge and insight with attendees.
Our second batch consists of:
Currently the Senior Vice President of Business Development & Fintech for Mastercard UK & Ireland, a position he’s held since 2014, Abraham describes himself as “a proven and successful senior sales leader with experience across a wide range of industries, sectors, and channels.”
Graduating from the University of Northampton in 1994 with a BA in Economics and Law, he worked for nine years at Sainsburys - eventually responsible for banking the company’s revenue and running its ATMs - and then Barclaycard for three years as Head of Client Management. In 2007, Abraham became VP of Client Management at American Express, and then VP and GM Global Supplier Relations EMEA in 2012.
In his current role at Mastercard, Abraham is accountable for the acceptance of all payments and products through all channels, devices, and technologies across UK and Ireland. In addition, he oversees the deployment of innovative new payment tech within the region.
Fraser-Hawkins’ role as CEO, UK Corporate, at Marsh McLennan is the continuation of a long and successful insurance career, which has included being London Sales Director for JLT Group and Branch Director for Willis Towers Watson.
Marsh prides itself on being a company that hires top-tier talent, does work that impacts peoples’ lives, and offers its employees the opportunity to make a difference. This is clearly an attitude that aligns with Fraser-Hawkins’ own values; regarding the insurer’s UK Young Professionals initiative, a support network to help young professionals in their development, he said:
"I am passionate about developing talent and our Young Professional CRG provides a brilliant community for our Young Professional colleagues to discuss key issues relevant early in their careers, as well as an environment to promote the skills, learning and network for success."
Massaro is currently the CEO of Boston fintech Flywire, a role he took on in 2013. He first joined the team in 2012 as VP of Business Development, but it wasn’t long before his entrepreneurial skills were redirected to leading the entire company’s high-growth strategy worldwide.
An expert in domestic and international payments and billing, enterprise technology sales, strategic alliances, enterprise software, SaaS, product management and marketing, and much more, Massaro is a consummate finance professional whose credentials befit the leadership of a prominent global payments fintech.
His previous positions include Consultant at PwC and Product Line Manager at Oracle, and he maintains a Mentor role at startup accelerator MassChallenge. He graduated magna cum laude from Babson College with a BS in Information Systems and Finance.
This event is set to be one of the year's most unmissable. If you want to get leading perspectives on the future of fintech and insurtech, go to Eventbrite and purchase your tickets now.