The UK experienced a 33.7% drop in the fintech sector.
Although global investment in the financial tech sector increased by nearly 11% to reach $17.4bn last year, the UK experienced a 33.7% drop.
Research commissioned by the fintech trade body Innovate Finance showed $783m was invested in UK fintech last year, compared with $1.2bn in 2015.
A year before the UK’s Brexit vote, Innovate Finance said the sector was worth £20bn in annual revenues to the UK, attracted 42% of all European investment and employed 135,000 people.
It said the sector was targeting the creation of 100,000 jobs and $8bn of investment by 2020.CEO of Innevate Finance, Lawrence Wintermeyer, said the 2016 slump was “largely attributed to the uncertainty of Brexit and geopolitical/macro-economic factors”.
“The loss of passporting rights will hit fintech payments firms if special provisions to the single market are not negotiated upon leaving the EU,” he added, before warning that Brexit would likely be a bigger concern than the loss of passporting rights.
He said: “Over 30% of Innovate Finance fintech founders and CxOs are non-British, with many employing European staff. Attracting further investment to UK fintech remains the number one priority.”Return to internet news headlines
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