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The Fintech Investment Continues to Grow in the European Countries
The financial technology arena across the European countries is witnessing significant growth with respect to the constant inflow of investment. However, the total global investment shows a downward trend.
FREMONT, CA: The financial technology space in countries like the UK, Germany, France, and Sweden is experiencing a continuous inflow of investment taking into consideration the initial six months of the current year. In another significant development, there is a decrease in the total amount of global funds received. As per industry observers, this loss could be attributed to the distortion due to a large deal that took place during the same timeframe last year. A funding of about $14b was raised by Ant Financial, an operator of the principal online payment platform, in 2018.
As part of a study by Accenture, the total amount of fintech deals worldwide until June end, 2019 stood at about $22b. This was less as compared to last year’s $31.2b, recording about 29 percent drop.
However, when it comes to the financial technology space across the countries belonging to the European Union, there has been an increased interest besides demand from customers as far as new fintech prepositions are concerned. This trend was particularly evident in elsewhere Europe and the UK.
Among other countries, Sweden has recorded the maximum proportional increase with investments reaching about $573m. The fintech investment for the first six months of 2019 stood at $2.6b for the UK, as compared to the initial six months of 2018.
Fundraising has also gone upward in these European countries. This, in turn, has been instrumental in supporting the scaling up of collaborative and challenging financial technology arena.
Amidst these positive trends, one question pertaining to the industry is how long is this likely to last? According to experts, it is possible that once the investments reach a certain level, there will be a decrease.