According to the Pitchbook Data technology has the power to increase transparency and efficiency, reduce cost, and give the most vulnerable access to financial services. Society and businesses both stand to gain from these changes, as incumbents are challenged by the new wave of digital innovation.
The UK has long been at the forefront of financial services. However, in more recent times, the sector’s positive response to the fourth industrial revolution has truly set us apart. The perfect storm caused by growing technology demand, right touch regulation, and customer empowerment in financial services, coupled with the sectors response to the financial crisis, has fuelled FinTech’s rapid growth in the UK and its expansion globally.
A defining feature of the UK FinTech market is the depth and breadth of sectors that it covers. Investment into challenger banks led the way with US$461m of VC investment in 2018: mostly Revolut’s Series C funding and Monzo’s US$110m Series E; but there were also high levels of VC investment into several FinTech subsectors, which showed a sharp increase in activity from 2017. T