Investment in fintech up by 37%, according to Innovate Finance

Figures from Innovate Finance have shown investment in the UK’s fintech industry has hit $564 million, with foreign investment playing a key role in growth despite Brexit.

Fintech investment increased by 37 per cent in the first half of 2017 compared with the same period last year.

Promising

The figures are promising, with a rise of nearly 50 per cent in the last half of 2016 after the result of the EU referendum.

The rise in the first half of the year places Britain in third place globally when it comes to fintech investment, with the US taking the top spot, followed by China.

The increase comes after concerns were raised over Brexit, with some worried the vote to leave could result in Britain no longer being the main European hub for financial technology.

The fintech sector has been recognised as a key priority by the government, with the industry contributing around US$9 billion to the UK economy and creating 60,000 jobs.

Recovery

Commenting on how things have improved for the UK’s fintech sector, Innovate Finance Chief Financial Officer Abdul Haseeb Basit said: “We saw a period of uncertainty over the summer last year but I would say that by around the third quarter, things were starting to recover.”

He added: “Things have slowed but we’ve seen an improving recovery since the referendum last year.”