Total UK fintech investment hit $37.3 billion in 2021, up sevenfold from $5.2 billion in 2020, according to figures compiled by KPMG.
In total, 601 M&A, private equity and venture capital fintech deals were finalised in the UK in 2021, up 27% from 470 in 2020. Five out of the ten largest fintech deals in the Emea region were completed in the UK.
Karim Haji, UK and EMA head of financial services at KPMG, saya: “The UK remains at the centre of European fintech investment with British fintechs attracting more funding than their counterparts in the rest of Emea combined.”
The global picture was also rosy, with total fintech funding reaching $210 billion across a record 5,684 deals in 2021. Payments continued to attract the most funding among fintech subsectors, accounting for $51.7 billion in investment globally in 2021 - up from $29.1 billion in 2020. A continued surge in interest in areas like ‘buy now, pay later’, embedded banking, and open banking aligned solutions has helped keep the payments space a magent for VC funding.
Anton Ruddenklau, global fintech leader, KPMG International, comments: “We’re seeing an incredible amount of interest in all manner of fintech companies, with record funding in areas like blockchain and crypto, cybersecurity, and wealthtech. While payments remains a significant driver of fintech activity, the sector is broadening every day.”