The Big Four accountancy firm’s “Pulse of Fintech” report showed that the UK also topped Europe for fintech investment, accounting for more than half of the total investment, which stood at $26bn.
The UK attracted $16.1bn (£12.3bn) in the first half of 2018, compared to $14.2bn in the US, with four of Europe’s ten deals taking place in the UK.
Vantiv’s $12.9bn acquisition of Worldpay was the biggest contributor to the UK’s fintech investment boost in the first half of the year, while digital banking firm Revolut, peer-to-peer finance firm Flender and wealth management firm Moneyfarm also completed some of the biggest fintech deals, raising $250m, $60m and $54m respectively.
Fintech investment also reached a record high globally, with $57.9bn being invested across 875 deals. This was up by 34.2% from 2017, when fintech investment stood at just $38.1bn for the whole year.
KPMG is expecting fintech investment in Europe to remain strong until the end of the year, with the accountancy firm predicting that regtech, wealth management and digital identification verification will see an increase in investment.
Commenting on the figures, KPMG Fintech’s Global Co-Lead Anton Ruddenklau said that 2018 has got off to an exceptionally strong start for the fintech sector.
“In addition to the bullish levels of investment the UK has attracted, our fintech sector has also benefited from the government’s continued support with the launch of the Fintech Sector Strategy,” he said.