The news here at fintechwebnews.co.uk is that the UK is leading the pack when it comes to financial technology investment, despite not being the largest or most successful economy in the Eurozone.
Since 2013 the UK has accounted for 38% of all European fintech deals. In second place is Germany, grabbing 15% of the deals, despite having an economy that out-performs the UK’s. This is because the financial industry in the UK has embraced all the disruption that fintechs have brought to the financial industry.
The UK also made moves to accommodate fintech start-ups in the UK by providing a robust funding environment and a system of regulations that has allowed for disruption and competition.
Germany versus United Kingdom
Germany has a larger economy than the UK, made clear by the world ranking of GDP in dollars. Germany sits at number five with 4,720 billion dollars, while the UK follows just behind in sixthposition with 4,622 billion dollars in 2016. Even though the UK does lead the race to develop financial technology, Germany isn’t far behind.
Fintechwebnews.co.uk reports on a recent report from CBInsights that has shown that after an average of 14 early-stage deals from 2012 through to 2014, early-stage deals for fintechs have grown and started to increase. In 2015 Germany had 23 early-stage fintech deals. In 2016 that increased to 34.
The amount invested in fintech start-ups is also increasing. In 2016, $134 million was invested and this year there has already been $83 million invested, over 22 deals.
Is the UK losing steam?
The UK’s numbers are down from previous years. The peak of investment and deals in the UK was in 2015, but the UK is still out-performing Germany when it comes to investment. In 2015 the UK raised $284 million, but in 2016 the numbers were down to $181 million. This year seems on track for growth rather than a $100 million downturn.
The question is if Germany will ever catch up or even overtake the UK’s investment prowess. Only time will tell so keep an eye on fintechwebnews.co.uk for further reports and news.