Global investment in financial technology or ‘Fin Tech’ has more than tripled during the last five years. And among the growing global centers of Fin Tech investments is the U.K. and, more specifically, London.
Those are among the many highlights of Accenture’s new report ‘The Boom in Global Fin Tech Investment: A new growth opportunity in London’. Using CB Insights’ data, the report offers insightful commentary and analysis around Fin Tech’s growth trajectory and the emergence and opportunities of London as Europe’s Fin Tech capital. Below are some highlights in the Accenture report. The entire 16-page report can be downloaded for free bylogging into CB Insights and visiting the Research tab. If you don’t have an account, you can create one for free here.
Global Fin Tech investments hit $3B in 2013
With innovation enabled by new consumer behaviors, technology and regulations, 2013 saw private Fin Tech companies raise nearly $3 billion – more than tripling the $930M invested globally in Fin Tech in 2008.
The rise of London as Europe’s Fin Tech hub
Accenture’s analysis of European fin tech data reveals that since 2004 the lion’s share of Europe’s Fin Tech deals and financing have taken place in UK and primarily London. In 2013, UK and Ireland represented more than half (53%) of Europe’s Fin Tech deals and more than two-thirds of Europe’s Fin tech funding (69%).
Silicon Valley dominates Fin Tech investments globally
While London may be Europe’s Fin Tech capital, its share of global Fin Tech financing is still relatively small, according to the Accenture report. In 2013, nearly 1 of every 3 Fin Tech dollars and 1 of every 5 deals went to Silicon Valley-based companies. Europe, meanwhile, accounted for 13% of all Fin Tech funding globally in 2013 and 15% of deals. However as the chart below highlights, London’s five-year growth trajectory in Fin Tech investments has outpaced Silicon Valley.