{"id":609376,"date":"2023-02-18T07:49:15","date_gmt":"2023-02-18T13:49:15","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/02\/18\/uk-saw-fintech-investment-collapse-in-2022-but-is-still-a-world-leader\/"},"modified":"2023-02-18T07:49:15","modified_gmt":"2023-02-18T13:49:15","slug":"uk-saw-fintech-investment-collapse-in-2022-but-is-still-a-world-leader","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/02\/18\/uk-saw-fintech-investment-collapse-in-2022-but-is-still-a-world-leader\/","title":{"rendered":"UK saw fintech investment collapse in 2022, but is still a world leader"},"content":{"rendered":"<div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.computerweekly.com\/visuals\/German\/article\/price-drop-2-adobe_searchsitetablet_520X173.jpg\" data-credit=\"jamdesign - stock.adobe.com\"  width=\"520\" height=\"173\" alt><\/p>\n<p>jamdesign &#8211; stock.adobe.com<\/p>\n<\/p><\/div>\n<div id=\"content-header\">\n<h2>Fintech investment in the UK sees steep drop, but the country was still a top destination for capital<\/h2>\n<\/div>\n<div id=\"content-center\">\n<ul>\n<li><i data-icon=\"1\"><\/i><\/li>\n<li><i data-icon=\"2\"><\/i><\/li>\n<\/ul>\n<div id=\"contributors-block\">\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Karl-Flinders-profile-pic-2022-140x180px.jpg\" alt=\"Karl Flinders\">\n\t\t\t\t\t<\/p>\n<p><span>By<\/span><\/p>\n<ul>\n<li>\n\t\t\t\t\t<a href=\"https:\/\/www.techtarget.com\/contributor\/Karl-Flinders\">Karl Flinders,<\/a><br \/>\n\t\t\t\t\t\t<span>Chief reporter and senior editor EMEA<\/span>\n\t\t\t\t\t\t<\/li>\n<\/ul>\n<p>\n\tPublished: <span>15 Feb 2023 11:30<\/span>\n<\/p>\n<\/div>\n<section id=\"content-body\">\n<p>The UK fintech sector saw a steep drop in investment last year, but was still a top-three global destination for capital.<\/p>\n<p>Investment in UK fintech from private equity and venture capitalist firms fell 56% in 2022, reaching $17.4bn compared with $39bn the previous year, according to KPMG.<\/p>\n<p>In its latest <i>Pulse of fintech <\/i>report, KPMG said investments in the second half of 2022 were much lower than the first six months as \u201chigher interest rates and inflation alongside downward pressure on valuations dampened investor appetite.\u201d<\/p>\n<p>There were 593 private equity and venture capital fintech deals in the UK in 2022, compared with 724 in the year before.\u00a0<\/p>\n<p>Despite the falling investments, KPMG\u2019s UK head of financial services, Karim Haji, said it was a strong year for the UK fintech industry. \u201cThe UK is a major global player, with investment in UK fintech only behind that of the US and Australia,\u201d he said.\u00a0<\/p>\n<p>Investment with UK fintechs attracted more funding than those in the rest of Europe combined.\u00a0<\/p>\n<p>Haji said 2022 was \u201ca tale of two halves\u201d with significantly more investment and deals in <a href=\"https:\/\/www.computerweekly.com\/news\/252524869\/Investment-in-UK-fintech-sees-fall-amid-global-turmoil\">the first half of 2022<\/a> than the second half. \u201cThe variance highlights the shift in investor sentiment in the face of increasing geopolictical challenges.\u201d<\/p>\n<p>A total of $11.8bn investment was received in the UK during the first half of the year, with 365 deals, compared with $5.6bn investment and 228 deals in the second half.<\/p>\n<p>Global investment in fintech last year, including mergers and acquisitions, private equity and venture capital was $164bn, compared with $239bn in 2021, which was a record. There were just over 6,000 deals last year globally, compared with more than 7,300 in 2021.<\/p>\n<p>Anton Ruddenklau, global fintech leader at KPMG International, said: \u201cWe\u2019re seeing an incredible amount of interest in all manner of fintech companies, with record funding in areas such as blockchain and crypto, cyber security, and wealthtech. While payments remains a significant driver of fintech activity globally, the sector is broadening every day.\u201d<\/p>\n<section data-menu-title=\"Cutbacks\">\n<h3><i data-icon=\"1\"><\/i>Cutbacks<\/h3>\n<p>The fintech sector, which has attracted huge investments over the past few years, is currently cutting back amid challenging market conditions.<\/p>\n<p>Fintech giant PayPal has <a href=\"https:\/\/www.computerweekly.com\/news\/365530135\/PayPal-slashes-2000-jobs-in-face-of-tough-economic-outlook?_gl=1*fcdd89*_ga*MTk0NzIwMDY4Ny4xNjcyODM0MjYy*_ga_TQKE4GS5P9*MTY3NjQ1NjQ1OC4xMjQuMS4xNjc2NDU2NjEwLjAuMC4w&#038;_ga=2.244704006.2046748745.1676284789-1947200687.1672834262\">said it will cut 2,000 jobs<\/a> \u2013 about 7% of staff \u2013 as it expects the current challenging economic conditions to continue.<\/p>\n<p>Earlier US fintech firm LendingClub also announced cuts, with\u00a0<a href=\"https:\/\/www.computerweekly.com\/news\/252529243\/Fintech-makes-job-cuts-to-workforce-amid-falling-demand\">14% of its workforce set<\/a> to go\u00a0as high interest rates stifle demand for its lending services. Meanwhile, UK payments infrastructure financial technology firm\u00a0<a href=\"https:\/\/www.computerweekly.com\/news\/252529251\/UK-fintech-payments-unicorn-cuts-back-as-Covid-19-boost-wears-off\">Paddle is reducing its workforce<\/a> of more than 350 by 8% as a boost to its business during the Covid-19 pandemic comes to an end.<\/p>\n<p>The UK fintech sector was recently backed by the government as a future growth industry. In a recent statement about the UK fintech sector, Paul Scully, digital economy minister, said: \u201cDespite global headwinds, British fintech firms showed great resilience last year, and helped boost the UK\u2019s status as a world leader in tech \u2013 delivering jobs and huge benefits for our economy.<\/p>\n<p>\u201cIn 2023, we are focusing on maintaining that lead by supporting startups, boosting digital skills and making this country an even more attractive destination to found, grow and invest in tech businesses.\u201d<\/p>\n<\/section>\n<\/section>\n<section id=\"DigDeeperSplash\">\n<h4>\n\t\t\t<i data-icon=\"m\"><\/i>Read more on IT for financial services<\/h4>\n<ul>\n<li><a id=\"DigDeeperItem-1\" href=\"https:\/\/www.computerweekly.com\/news\/365530135\/PayPal-slashes-2000-jobs-in-face-of-tough-economic-outlook\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/German\/article\/HR-choice-job-adobe_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/German\/article\/HR-choice-job-adobe_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/German\/article\/HR-choice-job-adobe.jpg 1280w\" alt ><\/p>\n<h5>PayPal slashes 2,000 jobs in face of tough economic outlook<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Karl-Flinders-profile-pic-2022-140x180px.jpg\" alt=\"KarlFlinders\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Karl\u00a0Flinders<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<li><a id=\"DigDeeperItem-2\" href=\"https:\/\/www.computerweekly.com\/news\/252529251\/UK-fintech-payments-unicorn-cuts-back-as-Covid-19-boost-wears-off\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/banking-finance-charts-fintech-adobe_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/banking-finance-charts-fintech-adobe_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/banking-finance-charts-fintech-adobe.jpg 1280w\" alt ><\/p>\n<h5>UK fintech payments unicorn cuts back as Covid-19 boost wears off<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Karl-Flinders-profile-pic-2022-140x180px.jpg\" alt=\"KarlFlinders\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Karl\u00a0Flinders<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<li><a id=\"DigDeeperItem-3\" href=\"https:\/\/www.computerweekly.com\/news\/252529243\/Fintech-makes-job-cuts-to-workforce-amid-falling-demand\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/German\/article\/job-loss-redundancy-adobe_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/German\/article\/job-loss-redundancy-adobe_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/German\/article\/job-loss-redundancy-adobe.jpg 1280w\" alt ><\/p>\n<h5>Fintech makes job cuts to workforce amid falling demand<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Karl-Flinders-profile-pic-2022-140x180px.jpg\" alt=\"KarlFlinders\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Karl\u00a0Flinders<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<li><a id=\"DigDeeperItem-4\" href=\"https:\/\/www.computerweekly.com\/news\/252529032\/Latest-Innovate-Finance-report-reveals-decrease-in-UK-fintech-investment-but-like-for-like-increase\"><br \/>\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero Images\/money-cash-banknotes-currency-international-Dilok-adobe_searchsitetablet_520X173.jpg\" srcset=\"https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/money-cash-banknotes-currency-international-Dilok-adobe_searchsitetablet_520X173.jpg 960w,https:\/\/cdn.ttgtmedia.com\/visuals\/ComputerWeekly\/Hero%20Images\/money-cash-banknotes-currency-international-Dilok-adobe.jpg 1280w\" alt ><\/p>\n<h5>Latest Innovate Finance report reveals decrease in UK fintech investment, but like-for-like increase<\/h5>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cdn.ttgtmedia.com\/rms\/computerweekly\/Karl-Flinders-profile-pic-2022-140x180px.jpg\" alt=\"KarlFlinders\">\n\t\t\t\t\t\t\t\t\t<\/p>\n<p><span>By: <span>Karl\u00a0Flinders<\/span><\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/div>\n<p>\t\t\t\t<\/a><\/li>\n<\/ul>\n<\/section>\n<\/div>\n<p><a href=\"https:\/\/www.computerweekly.com\/news\/365531372\/UK-saw-fintech-investment-collapse-in-2022-but-is-still-a-world-leader\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Margarete Guillemette<\/p>\n","protected":false},"excerpt":{"rendered":"<p>jamdesign &#8211; stock.adobe.com Fintech investment in the UK sees steep drop, but the country was still a top destination for capital By Karl Flinders, Chief reporter and senior editor EMEA Published: 15 Feb 2023 11:30 The UK fintech sector saw a steep drop in investment last year, but was still a top-three global destination for<\/p>\n","protected":false},"author":1,"featured_media":609377,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29934,260,46],"tags":[],"class_list":{"0":"post-609376","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-fintech","8":"category-investment","9":"category-technology"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/609376","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=609376"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/609376\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/609377"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=609376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=609376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=609376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}