Global Fintech Investments Decline by 57% in 2023

Investments in fintech have experienced a significant decline of 57% during the first half of 2023, reflecting a global trend of reduced fintech deals in terms of both volume and value. In the first six months of this year, there were a total of 2,153 fintech deals worldwide, amounting to $52.4 billion, compared to 2,885 deals totaling $63.2 billion in the second half of the previous year.

This decline is attributed to the prevailing economic uncertainty, which has affected fintech investments worldwide. Despite this global slump, the United Kingdom has managed to maintain its position as a leading European financial hub, as reported by KPMG.

In the first half of 2023, the total volume of fintech investments in the UK decreased to $5.9 billion (approximately £4.6 billion), experiencing a sharp drop from the $13.8 billion registered during the same period last year. Factors contributing to this decline include rising interest rates, swift inflation growth, and geopolitical tensions, all of which have undermined investor confidence.

Despite the slowdown, British fintech companies continue to attract more funding compared to their counterparts in other parts of Europe, the Middle East, and Africa.