Research by management consulting and technology services provider, Accenture shows that investment in the global Fintech sector tripled to a huge $12.2bn (£8.2bn) last year and grew at triple the rate of VC investment.
According to the research, the UK accounts for the largest share of European FinTech investment and Europe experienced the biggest growth last year compared to anywhere else in the world. The research shows that financial technology venture investment in Europe rose by 215 per cent last year to $148bn.
The research helps to further boost Europe’s reputation as an area that is producing talented start-ups within the financial technology space and thanks to the high number of quality accelerator programmes, investment from key financial players and plethora of innovative solutions, successful start-ups are continuing to emerge from the region.
During the race to become the best FinTech innovation hub, there has been an underlying rivalry between the US and the UK and according to the research, although the US still holds the biggest share of fintech investment, Europe has seen the highest growth rate. FinTech investments grew by 136 per cent to $623m in the UK compared to Silicon Valley which saw a rise of 117 per cent totalling $2bn.
The report, which was released during Accenture’s FinTech Innovation Lab ‘Investor Day’, also stated that the other regions in Europe to receive high levels of investment were the Nordic countries which gained $345m, the Netherlands with $306m and Germany received $82m.
Julian Skan, Managing Director, Accenture’s FinTech Innovation Lab London said: “The massive investment in FinTech shows that the digital revolution is well advanced in financial services, and it is both a threat and an opportunity for banks.”
Skan also said that, "FinTech is empowering new competitors and startups to move into parts of the banking business but, paradoxically, it is also helping banks to create better, more convenient products and service for their clients. It is also leading to increased cooperation between traditional banks and innovative start-ups and technology businesses in a way that can result in totally new business models and revenue streams."