Bye, Banks! UK Fintech Investment Still Strong After 30% 2017 Increase
The UK’s fintech scene is defying expectations to produce dramatic growth in investment this year compared to 2016.
Despite Brexit and big finance moving out of London, investment in UK fintech startups increased over 30 percent in 2017.
Compared to the same period last year, UK startups are defying bureaucratic changes and investors are following, contributing $564 mln in the first two quarters.
Over half this amount came from foreign sources, Reuters reports quoting statistics from trade body Innovate Finance.
The body’s chief financial officer Abdul Haseeb Basit told the publication:
"Were they to not invest in UK companies, they feel like they might miss an opportunity. The appetite is still strong."
The optimism contrasts sharply with recent announcements by global giants such as Morgan Stanley and Goldman Sachs, who said they were looking to relocate to Frankfurt to avoid the fallout from Brexit.
"Things have slowed, but we've seen an improving recovery since the referendum last year,” Basit added, noting the figures still lag behind 2015.
Businesses still face a headache over the UK’s split from the European Union, with ministers promising a “white paper” on the process in September 2018 including its impact on issues such as freedom of movement of citizens and labor.
Previously, meanwhile, extant fintech unicorn TransferWise has doubled down on its commitment not to leave London post-divorce, currently set for Spring 2019.