The first half of 2022 saw a 65% decrease in the amount invested in UK fintech as the global economy slowed.
However, the decline is exaggerated due to the unprecedented high growth experienced last year.
According to KPMG’s biennial, a total of $9.6bn was invested in UK fintech in the first six months of this year, compared to $27.8bn for the same period in 2021. Pulse of Fintech report good,
During this period, 262 UK mergers and acquisitions, private equity and venture capital fintech deals were completed, compared to 341 in the same six months last year.
KPMG said: “Geopolitical uncertainty, turbulent public markets, ongoing supply chain disruption, high levels of inflation and rising interest rates contributed to more suppressed levels of UK fintech investment than the record highs experienced in 2021 Is.”
The UK is therefore not unique in reporting falling investment, and despite the UK slowdown, five of the 10 largest fintech deals in the Europe Middle East and Africa region were completed in the UK.
Total global fintech funding reached $107.8bn with 2,980 deals in the first six months of 2022.
John Holsworth, Client Lead Partner, Banking and Fintech at KPMG UK, said: “Despite a slowdown in UK fintech investment over the past year, the UK remains at the center of European fintech innovation, with British fintech attracting more funding than France. are. , Germany, China, Brazil and Canada combined.”
Anton Rudenklau, global fintech leader at KPMG International, said that since 2021 saw huge investments in fintech, the latest figures look even worse than they are.
A KPMG report earlier this year showed that investment in UK fintech was seven times higher in the full year 2021 than in 2020. It found that UK fintech investment increased from $5.2 billion in 2020 to $37.3 billion (£27.5 billion) last year. ,
“Looking at the external results for 2021, global fintech investment and interest were quite positive in the first six months of this year,” it said.
“While market uncertainty is expected to continue in the second half, the diversity of fintech sub-sectors, coupled with the diversity of jurisdictions attracting fintech investment, could help keep investments in the space relatively solid in the near term. “
According to Holsworth, one area of fintech that is on the rise is anti-money laundering technology, as banks seek to comply with sanctions, sanctions and other regulatory measures as the war in Ukraine continues.
