Despite political uncertainties surrounding Brexit and economic turbulence brought about by the Covid-19 pandemic, the UK still remains the European fintech (opens in new tab) leader, new figures from the Association for Financial Markets in Europe (AFME) suggest.
The report states that other European nations have made significant progress in the field, but are still far from catching up with the UK.
As reported by City AM (opens in new tab), UK fintech startups attracted $2.47 billion in investment in the first half of 2020, while the rest of Europe combined managed to rake in only $2.176bn.
According to the AFME, the UK is such an attractive market because of its supportive regulatory environment, local sandboxes and innovation hubs.
Then there’s the country’s local funding ecosystem, which has contributed heavily to the success of the UK fintech landscape. It also accounted for more than half (58 percent) of the funding provided to fintechs (opens in new tab) elsewhere in Europe.
“The terms of the Brexit agreement between the EU and the UK will be crucial to determine the degree in which the UK will continue to benefit from attracting a global pool of talent for their local labor force and to continue to support the production of innovative products in leading research and education centers,” said the AFME.
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