22 April 2018
visit www.ebaday.com

UK fintech investment rises in H1

06 September 2017  |  7663 views  |  0 Source: Innovate Finance

More than a billion dollars was invested in British Fintech companies in the first half of this year, over a third more than the same period in 2016, according to trade body Innovate Finance.

Foreign investors also contributed to over half of the total, suggesting that despite concerns post-Brexit, international investors still see the region as an attractive place for their money.

Fintech employs over 60,000 people in the UK and contributes $9bn (c.£7bn) to the economy. UK companies have been exploiting the market disruption opportunities that cloud technologies have offered for financial services. Cloud and software as a service can help address the challenges the industry has faced, with high speed transactions and the need for real time reporting, creating new challenges.

A notable UK success story was Durham based Atom which announced £100m round of investment in February this year. This was led by its existing investors including hedge fund Toscafund and Spanish bank BBVA. It then received another £30m from British Business Bank. Its unique selling point is that its banking can only be accessed through mobile or tablet devices, allowing it to keep a significantly lower cost model than its competitors. The business has plans to hit profitability in three years’ time and go public.

Two peer-to-peer lending platforms also received significant rounds of investment. London-based FundingCircle a marketplace which allows investors to lend directly to SMEs raised another £80m in equity funding. Venture capital group Accel led the funding round alongside investors such as Temasek from Singapore. The business lent £1.1bn in 2016. In June Zopa another peer-to-peer lender raised £32m from Indian investor Wadhawan Global Capital and European venture capital fund Northzone. The business plans to use the funding for the ambitious roll out of its own retail bank.

Another UK Fintech headline was Currencycloud which raised £20m from Google’s venture capital arm. The business provides software which allows businesses to make cross border payments and more than $25bn (c.£20bn) has been sent across its network. The business plans to use its funding to build its operations in North America and establish an operation in Asia. 

Comments: (0)

Comment on this story (membership required)

Related blogs

Create a blog about this story (membership required)
Visit https://aciworldwide.webex.comVisit http://wup.digitalvisit www.ebaday.com

Top topics

Most viewed Most shared
Top tier banks pass first transactions on trade finance blockchainTop tier banks pass first transactions on...
11485 views comments | 20 tweets | 27 linkedin
TransferWise becomes first non-bank to open settlement account with BofE RTGSTransferWise becomes first non-bank to ope...
10079 views comments | 18 tweets | 32 linkedin
Revolut launches spare change savings toolRevolut launches spare change savings tool
9902 views comments | 14 tweets | 19 linkedin
Barclays Bank sets up tech venture unitBarclays Bank sets up tech venture unit
9146 views comments | 16 tweets | 22 linkedin
Goldman Sachs acquires PFM startup Clarity MoneyGoldman Sachs acquires PFM startup Clarity...
8536 views comments | 9 tweets | 10 linkedin

Featured job

Competitive base + commission + benefits
UK or Germany

Find your next job