UK fintech investment has increased 500 percent over the last five years. The country has even beat the US which recorded investment growth of 170 percent over the same period, while Europe recorded a 133 percent increase.
A research report published by Vacancysoft observed that the UK fintechs received the highest amount of investments across Europe. It appears that the country’s fintech investments reached $48 billion in 2019.
Ahsan Iqbal, Director of Technology (Regions) at Robert Walters, said in the report, “If the government are serious about levelling up the country to catch up with London, then serious thought needs to be given to how and why London-based businesses remain so much more attractive to VC. Work is already being done in Birmingham with HS2, as well as within Manchester, Leeds and Liverpool to grow the Northern Powerhouse. In the last few years, we have seen regions outside the UK establish their own tech hubs and as a result, are holding ontotalent. We will see this trend continuing into 2020.”
When the UK leaves the EU, governments might establish incentives to further develop local and regional fintech communities. In fact, the country’s digital financial sector is booming with the next generation of fintech startups and neobanks. In light of the current circumstances, fintech investments might become more important than ever as economies favour remote work and online engagement.
Also, the country’s regulatory approach to innovation is quite robust. Policy makers and regulatory bodies have developed a progressive regulatory scheme to promote fintech growth