Investment in UK-based financial tech firms soared last year, with Britain attracting more fintech funding than the rest of Europe, the Middle East and Africa combined.
According to the latest report from KPMG, fintech investment in the UK totalled US$37.3bn (£27.5bn) in 2021, a sevenfold increase on the previoys year.
A total of 601 deals were finalised in the UK last year, up from 470 in 2020.
Of the 10 largest fintech investment deals finalised in EMEA, five were completed in the UK, including the US$14.8bn Refinitiv deal in January 2021.
Globally, fintech funding totalled US$210bn last year, with the number of deals reaching a record 5,684.
Venture capital (VC) investment globally reached a record US$115bn in 2021. The year saw a record seven fintech-focused VC-funding rounds over US$1bn.
KPMG said 2021 was a "blockbuster" year for crypto and blockchain, with global investment soaring to US$30bn from US$5.4bn, reflecting increasing recognition "for the potential role of crypto and its underlying technologies in modern financial systems".
Payments companies, such as 'buy now, pay later' firm Klarna, attracted "robust" investments in 2021, KPMG said, with funding rising to US$51.7bn from US$29.1bn the year before.
Anton Ruddenklau, global fintech leader, KPMG International, said: “We’re seeing an incredible amount of interest in all manner of fintech companies, with record funding in areas like blockchain and crypto, cybersecurity, and wealthtech. While payments remain a significant driver of fintech activity, the sector is broadening every day.”