The past year brought forth multiple changes in the financial industry as the pandemic disrupted almost all traditional systems. At a time when people needed contactless transaction methods, fintech companies rose to the challenges and met them head-on. This was one of the main reasons why investors love the market, pumping millions into the European fintech market.
Latest reports revealed that in the first six months of 2021, London’s fintech market received more capital than it had over any other year. Venture capitalists have flocked to England’s capital for its vast fintech options and the reach they can achieve. The total capital influx from January to June clocked in at $5.3 billion which was twice the amount generated over the same time in 2020. According to the study conducted by Dealroom Agency, investors considered London’s financial climate to be a solid bargain in terms of resources and personnel available.
Banking officials in the city believed that the latest polling numbers were a sign of rapid growth and confidence in the industry. Anne Boden, the chief executive of London neobank Starling claimed that the investment boom would signal foreign companies to enter the market and develop the European ecosystem as a whole. Starling itself was able to raise $444.8 million in multiple rounds of investments along with other organizations.
London-based Saltpay and Checkout.com also raised $478 million and $450 million respectively. The aforementioned investments come at a critical juncture in the UK’s trade policies. Several bigwigs were waiting with bated breath to see how trade would be affected by a lack of European Union support. Speaking to the topic, ComplyADvantage CEO Charles Delingpole said:
“The loss of passporting after Brexit means that licensing and international expansion is no longer easiest in London. London therefore has to move to a higher value-added model focused on a global rather than European hub role.”
Globally London holds second place in terms of digital transactions with San Fransisco being the undisputed leader. The new data was completely opposite to the stance held by London officials on fintech a few weeks back. It meant that despite the regulatory confusion, users were still bullish on digital assets.