London overtakes New York and San Francisco for number of fintech investment deals

But San Francisco still tops the list for total deal value

London has overtaken two American cities to become the world's top hub in terms of attracting investment deals in financial technology sector.

That's according to a report released by Mayor of London Sadiq Khan's promotional agency London & Partners and industry group Innovate Finance, exploring the fintech venture capital (VC)-led investment trends in major cities across the world..

The report is based on the data from private capital markets research firm Pitchbook.

In this research, Pitchbook compared world's major cities and countries in terms of number of deals, their total values and investment sources in the fintech sector.

The findings revealed that London attracted a total of 114 investment deals in fintech in the first eight months of 2019.

The UK capital was followed by New York and San Francisco, which secured total 101 and 80 deals, respectively, during the same period.

However, in terms of total deal value, San Francisco, the startup and VC hub, topped the list by securing deals worth $3 billion. London was ranked second with deals worth $2.1 billion, followed by New York whose 101 deals were valued at $1.9 billion.

Brussels and Stockholm grabbed fourth and fifth position in the list with investments worth $881 million and $735 million, respectively.

Based on recent data, the London has become home to some of the world's largest fintech startups, with many having a valuation worth billions of pounds.

According to local industry executives, Britain and the rest of Europe are now ahead of other countries when it comes to adoption of new fintech apps as well as innovation in the financial services industry.

"London has always been ahead of the curve and pivotal in embracing new technology and opportunities while pushing the boundaries of an existing ecosystem, to present an even better solution," said Laura Citron, chief executive of London & Partners.

Innovate Finance chief Charlotte Crosswell said the UK has become the global leader in fintech, in part because of London's position as a leading financial centre.

"With record investment under our belts, this is the time to boost the sector further and secure future growth," said Crosswell.

Overall, the US remains the largest fintech market globally, having raised about $9.4 billion so far in 2019.

Delta, Computing 's new market intelligence service, is now launching its research into fintech. There are four spaces left for organisations to get involved and help define the scope of this research. If you would like to get involved, or find out more, please contact Stuart Sumner: [email protected]