Global investment in financial-technology ventures has more than tripled from £561 million in 2008 to nearly £1.8 billion in 2013, a recent study has found.
The study by global management company Accenture showed that over the past three years, investment has increased at more than four times the rate of overall venture-capital investment.
The UK and Ireland (UKI) are now the fastest growing regions for co-called “fintech” investment. Deal-volume has also been growing at a rate of around 75% a year since 2008, compared with 27% globally and 13% in America’s Silicon Valley.
As a result of this rapid growth, which accounts for more than half of all investment in Europe, London has emerged at the fintech capital of Europe.
Julian Skan, Accenture managing director overseeing the FinTech Innovation Lab London, said:
“The fintech boom is a huge opportunity for London with its well-developed financial and technology industries.
“It is also crucial to London maintaining its position as the leading global financial centre because of the growing importance of technology to the financial industry.”
According to the study, the growth of London’s fintech cluster has been driven by its strength in financial services and a thriving tech sector that has enjoyed an ‘entrepreneurial renaissance’ in recent years. Four of the world’s ten biggest banks have either global headquarters or European headquarters situated in London. There are approximately 135,000 financial-services technology workers in UK.
Photo by Charles Thompson