UK Fintech Body, Innovate Finance Reveals the 2022 Global Fintech Investment Trends
New data by Innovate Finance, the industry body representing the FinTech community in the UK, reveals the global FinTech investment trends in 2022.
The total capital invested into FinTech globally reached $92 billion in 2022, a decrease of 30% compared to 2021, when total investment amounted to $130 billion. The capital invested in FinTech in 2022 was spread across 5,263 deals – compared to 6,146 deals in 2021.
Overall, the US received the most investment in 2022, bringing in over $39 billion in FinTech capital, with the UK firmly in second place with $12.5 billion, rounded off by India with $5.5 billion, Singapore with $4 billion and Germany with $2.9 billion.
UK based FinTechs received $12.5 billion in investment spread across 546 deals compared to $13.5 billion across 583 deals in 2021, a decrease of just 8% from 2021. This is notably a much smaller decrease than the global average, with many other countries, including the US, suffering a double digit decrease in investment. London continues to be a leading global FinTech investment hub with $10.2 billion received in 2022, down only 5% from 2021.
The global slowdown comes with some exceptions including Singapore, which recorded an increase in investment of 41% from 2021.
Some countries have witnessed notable drops in investment in 2022 including China and Brazil, both falling down the global rankings with drops in investment of 65% and 57% respectively from 2021. Other countries, on the other hand, have jumped in the ranking, including France from 11th to 6th position and Singapore from 7th to 4th position.
The value of the top 5 biggest deals globally in 2022 was over $5 billion or 6% of total global investment into FinTechs, with FNZ receiving $1.4 billion, the largest investment in 2022. The other four largest deals from highest to lowest included Trade Republic, Checkout.com, Klarna and Ramp. Two of the top five deals, FNZ and Checkout.com, occurred in the UK.
Janine Hirt, CEO of Innovate Finance, said:
“UK FinTechs are holding the fort in securing great levels of investment in challenging economic times, a testament to the resilience and strength of our sector.
Our latest report shows that the UK is still receiving more investment in FinTech than all of the next 10 European countries combined, and remains second in the world only to the US. We must continue to work together with industry, government and regulators to build on this momentum and maintain the leadership of the UK as a global centre to start, scale and grow a FinTech business. This is perhaps more important now than ever before as FinTech continues to redefine financial services and provide greater financial support and access to consumers during the cost of living crisis.”
Digital Economy Minister Paul Scully said:
“Despite global headwinds, British FinTech firms showed great resilience last year and helped boost the UK‘s status as a world leader in tech – delivering jobs and huge benefits for our economy.
“In 2023 we are focusing on maintaining that lead by supporting start-ups, boosting digital skills and making this country an even more attractive destination to found, grow and invest in tech businesses.”
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