More established UK fintech’s were the biggest recipients of investment in the first half of this year, which demonstrated that businesses are maturing.
Investment in UK fintechs in the first half of this year was $2.9bn, which is 85% of the total invested in 2018, according to figures from fintech industry body Innovate Finance. It is also 45% higher than the same six month period last year. London based companies took 90% of this.
It was challenger banks that got most investment during the six months with payments and foreign exchange fintechs close behind.
For example challenger banks including OakNorth ($440m), Monzo ($147m) and Starling Bank ($98m) got the most significant investments. In payments and foreign exchange sectors Checkout.com ($230m), WorldRemit ($175m) and GoCardless ($76m) were major recipients.
A total of that 85% of the investment was in more established fintechs, with early stage fintechs taking the remainder.
Charlotte Crosswell, CEO of Innovate Finance, said the type of investments is a reflection of the sectiors maturity. “The flow and impressive size of individual investments demonstrate an ecosystem that is showing signs of growing maturity. “
But the sector could face difficulties if the UK leaves the EU without a deal. “. Both the flow of capital and a wide talent pool are essential to maintaining the sector’s strength, and we remain committed to support efforts in these vital areas,” said Crosswell.