UK fintech funding declined in 2022

fintech, declineThere was an 8% slump in funding for UK fintechs in 2022, according to data from industry body Innovate Finance.

A combination of interest rate rises, high inflation and the disruption caused by the war in Ukraine saw the volume of capital invested in fintechs, drop from $13.5 billion to $12.5 billion.

However, the modest decline is still above the global average, where investment levels fells by nearly a third to $92 billion while the number of deals also fell, from 6,146 to 5,263.

According to Janine Hirt, chief executive of Innovate Finance, the figures are a “testament to the resilience and strength of our sector”.

The report coincides with news from FinTech Scotland that funding in the country increased by 200% in 2022 to more than £305 million. While the majority (60%) went to payments data-focused startups, there was also “significant investment” in wealth management and regtech-focused ventures.

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