UK trumps Germany for FinTech investments in Q1 2017

Since 2014 the FinTech industry in Germany has been growing. Figures for Q1 2017 show an increase in funding compared to Q1 last year in both Germany and the UK. Whilst the UK consistently trumps Germany in its investment figures, the share of investment to German companies compared to those based in the UK is rising.

Investment in FinTech in the UK soars, with Q1 2017 receiving almost double the investment in Q1 2016.

  • Investment’s in both German and UK FinTech hit five quarter high’s in Q1 2017. Germany received a 42.5% increase on investment in Q1 2017 while the investment in the UK increased by a massive 81.7%.
  • Both the UK and Germany raised almost half of their total funding for 2016 in Q1 2017. Therefore, total investment in FinTech looks set to surpass the value invested in 2016 in both countries.
  • The United Kingdom have received more than 2 times the overall investment in German FinTech over the last 5 quarters.
  • So far in Q1 2017 the United Kingdom’s challenger bank Atom Bank has raised $101.8m while Germany’s largest deal went to Raisin, who’s platform allows its customers to compare interest rates and open deposits across Europe for free, in their $32.03m series C funding round.

Germany gains ground on FinTech investments in the UK.

  • Germany’s share of FinTech investment has increased by 16.3% between 2014 and 2016.
  • While Germany’s share of FinTech investment has been increasing year on year, the largest shift occurred in 2015 when Germany’s share increased by 14.5%. Therefore, only a small part of the 16.3% increase can be attributed to Brexit.
  • German FinTech success stories SolarisBank, Rasin and Simplesurance are among those who raised large funding rounds in Q1 2017. In particular, SolarisBank, who allow companies to offer their own financial products, raised $28.4m in March.
  • Alongside Atom Bank, the UK’s Funding Circle also raised in excess of $100m in Q1 2017 for their lending platform dedicated to SME finance. Other successful FinTech’s based in the United Kingdom include payments companies Upstream and Currencycloud, who both raised more than $20m in Q1 2017.

The United Kingdom received move investment than Germany in every FinTech Sector except InsurTech over the last 5 quarters.

  • The Marketplace lending sector has received the most funding in both the UK and Germany over the last 5 quarters.
  • The InsurTech sector in Germany received more than double the investment that the sector received in the UK. InsurTech is the only sector where Germany receives more funding than the UK.
  • Whilst WealthTech received the second largest total investment in the UK, the Infrastructure and enterprise software sector grabbed second place in Germany.

Germany’s FinTech Industry has grown since 2016 and FinTech Global has identified more than 250 companies active in the country. However, the total investment in British FinTech in Q1 2017 was more than double the amount invested in German FinTech in the same period.

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