UK Fintech Investment: Glimpse into the Past and Future

TLDR: Innovate Finance has released its ‘FinTech Investment Landscape 2023’ report, which shows that global fintech investment dropped by 48% in 2023 compared to the previous year. However, a panel hosted by Innovate Finance and the City of London Corporation discussed why 2024 is expected to be different for fintech, particularly in the UK. The report states that the UK retained its position as the second-largest country for fintech investment behind the US, with $5.1 billion invested in 2023. Despite a drop of around 65% from 2022, the UK outpaced India, which only received $2.5 billion in investment. The panel members highlighted the importance of talent in the success of fintech companies, with every VC firm reportedly focusing on the talent, capability, and underlying proposition. The panel also discussed future trends and predictions for 2024, including an anticipated increase in mergers and acquisitions in the fintech sector. Although there may not be a single moment to mark the reset of the market, the panel expressed optimism that 2024 will be a turnaround year for fintech investment.