Britain recorded its best ever 12 months for FinTech investment in 2021, exceeding $11.6 billion (£9.7 billion).

The figures, published by Innovate Finance, represent a 217 per cent hike compared to the previous year.

The numbers correlate with global levels, with the total capital invested around the world increasing by 183 per cent to $102 billion last year.

61 per cent of all global capital has been invested in later stage growth funding.

The UK’s share represents 11 per cent of the world’s capital investment, a slight boost from the 10 per cent recorded for the previous two years.

The US spent the most – $46 billion – on FinTech last year. The UK came in second place, followed by India – $6.3 billion, Germany –$4.4 billion, and Brazil – $3.8 billion.

“The impressive investment figures speak for themselves – it’s been a superb year for FinTech in the UK, and indeed all around the world,” said Janine Hirt, chief executive, Innovate Finance. “The huge increase in funding levels is testament to the world-class innovation and ingenuity that’s driving forward and positively transforming financial services.”

Hirt said that the industry is delivering on all the biggest global needs and trends, including business productivity, consumer behaviours, financial wellness and inclusion, climate change solutions, as well as cybersecurity.

“Our FinTech sector is reaching new levels of maturity, and investors are responding to the growing market demand for the products and services our entrepreneurs are able to provide,” added the chief exec. “We are on the right trajectory in terms of levels of funding and now it’s time to also properly address the funding gap for underrepresented founders, if we are to create a truly sustainable and forward-looking sector.”

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