THE LEVEL of investment into fintech firms in the UK is set to hit a new record in 2017, new research has suggested.
Data from London & Partners and Pitchfork found that so far this year more than $1bn (£760m) has been poured into UK fintech companies – more than double the amount invested at this point last year – with firms in the capital accounting for more than 90 per cent of that money.
In fact, the research suggested that fintech firms in London have attracted more than five times the level of investment as any other European city over the past five years.
The previous record was set in 2015, when UK firms attracted $1.16bn (£880m) in investment.
The strong performance of London and the UK as a whole comes despite concerns that the Brexit process might dent the nation’s attractiveness to foreign investors.
Rajesh Agrawal, London’s deputy mayor for business, said that the level of venture capital investment into London fintech firms since the Brexit vote was “proof that global investors still believe London will remain a leading fintech hub for many years to come”.
“Clearly, Brexit poses major challenges – but London’s position as a global financial centre and world-class technology hub is built on strong foundations which cannot be replicated anywhere else,” he continued. “This highlights the need for a Brexit which enables London to maintain its place at the heart of the single market, as Europe’s financial capital.”
Last month London was named the world’s top financial centre in the The Global Financial Centres Index (GFCI), compiled by think tank Z/Yen. While confidence dropped in most areas over the last six months, London retained the top spot having seen the smallest decline in confidence among the top 10 financial centres.