Statistics have recently revealed that investments in the United Kingdom’s financial technology (fintech) sector fell by 57% since last year. However, according to a brand-new study, regulation of UK sectors for crypto currency and digital assets could be set to change this trend. UK consumers interested in different asset classes often look for investment advice in Chester, Liverpool and other cities.
During the peak of calls for digital disruption, the opportunities created by fintech firms was believed to be significant for the financial sector in the UK. As financial institutions sought to tackle complex issues like shifting consumer expectations, competition from digital start-ups and regulatory restrictions, many investors saw innovative fintech platforms as the solution to their problems. This belief was reflected by major investment from Europe in the sector at the beginning of 2019, which close to doubled levels seen in 2018.
Following the pandemic, the UK’s fintech, investors grew tired of waiting for returns promised in the face of a tougher economic climate. The boom ended, and interest notably waned for financial technology enterprises. Rising optimism, however, resulted in a reprieve in 2021, although between 2022 and 2023 the sector has declined by close to 60%.
However, researchers believe the tide is now about to change for UK fintech due to the nation’s efforts to become a global centre for crypto and digital assets. New regulations will be in force by 2024, creating a safer and more attractive investment environment for participants.
