26 February 2017
visit nextgenbanking.co.uk

London enjoys fintech investment boom

26 March 2014  |  7678 views  |  0 Canaru whaf skyline

The UK and Ireland has emerged as the world's fastest growing region for financial technology investment over the last five years as London establishes itself as the fintech capital of Europe.

According to Accenture, global investment in fintech ventures is booming, more than tripling from $928 million in 2008 to $2.97 billion in 2013. Over the past three years, such investment has grown at four times the rate of overall VC spending.

Although the US still dominates, the UK and Ireland is seeing far greater growth. Deal-volume, mostly related to London, has been growing at an annualised rate of 74% since 2008, compared with 27% globally and 13% in Silicon Valley.

According to data from CB Insight, over the last five years, the value of fintech investment in the UK and Ireland increased nearly eightfold to $265 million in 2013.

Although this is well short of the $950 million raised in Silicon Valley last year, the annualised growth rate for the UK and Ireland since 2008 is 51%, compared to just 23% for the West Coast hub.

With London's status as a financial services superpower enticing the fintech world, the UK and Ireland now accounts for more than half of all investment in Europe.

Accenture's Julian Skan, who oversees the firm's own London fintech innovation lab, says: "The fintech boom is a huge opportunity for London with its well-developed financial and technology industries. It is also crucial to London maintaining its position as the leading global financial center because of the growing importance of technology to the financial industry."

However, London still has problems, he warns: "It is harder to raise funding, and entrepreneurs are less focused on commercialising new ideas than in the US. It is also difficult for small entrepreneurial companies to gain entry to big global banks."

Finextra is running a two-day conference exploring the new wave of innovation and debating the hot issues influencing the fintech investment scene in Europe. Finextra Future Money will play host to more than 250 senior business, IT and innovation participants at banks, VCs, start-ups and industry influencers at Level39 in Canary Wharf, Europe's largest accelerator space for finance, retail and future cities technology companies.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

£1m London tech startup competition ditched

£1m London tech startup competition ditched

26 March 2014  |  4288 views  |  4 comments | 4 tweets | 1 linkedin
Lloyds' digital lead Hatami to keynote Finextra Future Money

Lloyds' digital lead Hatami to keynote Finextra Future Money

14 March 2014  |  6930 views  |  0 comments | 2 tweets | 1 linkedin
Startupbootcamp launches fintech accelerator programme

Startupbootcamp launches fintech accelerator programme

06 February 2014  |  9893 views  |  0 comments | 11 tweets | 10 linkedin
Barclays Bank kicks off fintech accelerator programme

Barclays Bank kicks off fintech accelerator programme

09 December 2013  |  10539 views  |  0 comments | 23 tweets | 10 linkedin
Fintech for the underbanked attracts $5.2 billion investment spend in US

Fintech for the underbanked attracts $5.2 billion investment spend in US

07 November 2013  |  8012 views  |  0 comments | 21 tweets | 4 linkedin
New fintech investment opportunities surface at Money2020

New fintech investment opportunities surface at Money2020

08 October 2013  |  9475 views  |  0 comments | 9 tweets | 4 linkedin
Former VeriFone chief Bergeron and GTCR create $500 million fintech acquisition fund

Former VeriFone chief Bergeron and GTCR create $500 million fintech acquisition fund

25 September 2013  |  8154 views  |  1 comments | 7 tweets | 2 linkedin
Fintech innovation VCs Anthemis Group and Life.Sreda team up

Fintech innovation VCs Anthemis Group and Life.Sreda team up

04 September 2013  |  7114 views  |  0 comments | 6 tweets | 3 linkedin
Applications open for FinTech Innovation Lab London

Applications open for FinTech Innovation Lab London

05 August 2013  |  5583 views  |  0 comments | 7 tweets
Investment in US fintech firms on the rise

Investment in US fintech firms on the rise

12 July 2013  |  8946 views  |  0 comments | 12 tweets | 14 linkedin
Level39: A place for 'grow-ups'

Level39: A place for 'grow-ups'

09 May 2013  |  8330 views  |  0 comments | 6 tweets | 2 linkedin
Boris Johnson opens Canary Wharf fintech 'accelerator space'

Boris Johnson opens Canary Wharf fintech 'accelerator space'

19 March 2013  |  6115 views  |  0 comments | 8 tweets | 2 linkedin
Geeks descend on Canary Wharf for fintech hackathon

Geeks descend on Canary Wharf for fintech hackathon

01 March 2013  |  7311 views  |  0 comments | 9 tweets | 3 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit Yelloco.co.ukhttp://www.financialcrimerisk.fiserv.com/aml?r=finextravisit BNP paribas

Who is commenting?

Top topics

Most viewed Most shared
EBA to relax controversial PSD2 authentication rulesEBA to relax controversial PSD2 authentica...
13020 views comments | 52 tweets | 74 linkedin
RBS to become fintech fund and high street outlet for challenger banks under HMT remedyRBS to become fintech fund and high street...
8659 views comments | 40 tweets | 34 linkedin
BNY Mellon seeks blockchain experts for new emerging biz and tech teamBNY Mellon seeks blockchain experts for ne...
7151 views comments | 7 tweets | 4 linkedin
High rate of defaults hit P2P lending sectorHigh rate of defaults hit P2P lending sect...
6888 views comments | 19 tweets | 13 linkedin
hands typing furiouslyBlockchain Technology
6811 views 1 | 17 tweets | 7 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job