London overtaking the fintech investment crown is the big news circling finance media across the globe. $2.1 billion are secured within the Old Smog.
San Francisco has made a name for itself as a venture capital with raising around $900 million, now the powerhouse lost to London and New York with a total number of 181 deals from both cities. London also conquered New York at becoming the world’s most active fintech hub by the number of fundraising deals in 2019.
Some of the fintech firms funded by London achieved the “unicorn” status (a status gained with more than $1 billion valuation). Digital banks in London have drawn a lot of funding, putting themselves in the ranks of most valuable tech companies. Revolut, Monzo, and Atom Bank are said to have raised a smashing $900 million and are ranking to be one of the best fintech companies. This is the so-called “challenger bank” model. It has helped draw in millions of users, with Revolut having recently hit over 7 million users and Monzo hitting 3 million. Revolut is hoping to raise more funds this year.
Although the US still holds the cup for being the biggest market in the world, industry executives hold the opinion that Britain and Europe as a whole adapt and progress way better in innovation and the financial industry. Adopting contactless payments and fintech apps is also a big advantage that puts the EU fintech market ahead of its competitiors.
“London has always been ahead of the curve and pivotal in embracing new technology and opportunities while pushing the boundaries of an existing ecosystem, to present an even better solution,” said Laura Citron, chief executive of London & Partners.
“This is why we’ve seen these outstanding global trends in fintech. The financial technology sector is diverse, creative, cutting-edge and innovative – these very qualities are shared by London and Londoners.”
Innovate Finance chief executive Charlotte Crosswell added to the argument:
“The UK is the clear global leader in fintech, spearheaded by London’s success and its long-standing position as a major leading financial centre. It’s no surprise that London and the whole of the UK fintech sector is experiencing record growth – we are home to world-class talent and our historical pedigree enables access to key global markets. With record investment under our belts, this is the time to boost the sector further and secure future growth.”
Samantha Yap, Founder & Director of YAP Global – a London-based PR firm with a focus on fintech, Blockchain and Cryptocurrency commented on the matter:
“London truly is a fantastic hub to grow a business in the Fintech and Blockchain technology industry because of the endless opportunities to build valuable connections. There’s no shortage of fintech forums or Blockchain conferences in this city where you can potentially meet your next customer, client or business partner.”
It looks as if everyone is overjoyed by the news of London’s success and there is a high chance this success is going to get bigger and bigger with London becoming the fintech capital of the world. London surely has the resources and it’s bound to lead the fintech and finance sector to victory.
In the Crypto and Blockchain industry the amount of fintech companies and startups raises as you read this article. Government support for the financial sector and (fintech) is outrageous. Not only the size is taken into account though (global funding = $111.8 billion). Its rapid growth is based on the massive need and consumerism of new technology and all types of devices.
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