Figures show that FinTech investment has fallen by 57% in the first two quarters of 2023 amid a period of economic uncertainty. However, despite this year’s slump, the United Kingdom has managed to retain its position as one of Europe’s foremost financial centres, according to recent data.
Over the first half of the year, UK fintech investment has plummeted sharply to £4.6 billion marking a considerable decrease from the £11.8 billion which was recorded for the same period in 2022. Soaring inflation, rising interest rates and widespread geopolitical tensions over the six-month period have all contributed to the dampening effect on investor confidence in the sector.
Savvy UK consumers keen to put their money in sectors like FinTech first seek out investment advice in Chester, Liverpool and other financial centres across the country. Wealth managers are among the professionals commonly consulted as they can offer expert and impartial advice.
The clear decline has been identified as a global trend, impacting both the total value and number of FinTech deals decreasing across the world. In the first two quarters of 2023, there were a total of 2,153 FinTech deals completed globally, which amounted to £42 billion, compared to the 2,885 deals in the second half of 2022, valued at $48.2 billion in total.
Within the UK, 215 deals were made in the UK during the first six months of 2023 compared to 392 deals in 2022. Despite the slowdown, UK-based FinTech firms are still attracting more funding than their global counterparts in Europe, Africa, and the Middle East.