The UK surpassed Germany’s FinTech funding last year, according to a report produced by KMPG and CB Insights.
The report, titled ‘The Pulse of FinTech, 2015 in Review: Global Analysis of FinTech Venture Funding,’ found that UK FinTech investment outpaced that of Germany by 398% in 2015 due to large funding deals by Funding Circle, WorldRemit and Atom Bank.
“It’s a challenging but exciting time. It’s hard to imagine how FinTech will evolve next,” said the report, adding “Geographic diversification has led to FinTech hubs rising in numerous locations – London, Sydney, Tel Aviv, Singapore and Hong Kong to name but a few.
“Embracing FinTech is not simply about looking to Silicon Valley. Different geographies are putting their own spin on FinTech, creating new sub-sectors almost every day.”
Spotlight on FinTech in Europe
According to the report, European VC investment in FinTech hit $1.5bn in 2015, with Index Ventures and Balderton Capital being the most active investors in the space since 2011.
The report also noted that although Europe represents a small amount of VC investment compared to North America or Asia, the significant year-over-year growth suggests that interest in the FinTech space is growing rapidly.
Looking ahead, the report added, FinTech investment is expected to continue growing in Europe, with corporate investors becoming more interested as other monetary and macroeconomic issues in Europe settle down.
The report also predicted that insurance-tech is likely to grow as an industry, with many many European companies in the space ripe for the similar levels of disruption as banking.