The UK is eroding its position as Europe’s premier financial and technology services centre and that’s good news for Sweden, which has regained its place as the third largest country in terms of deals.
As the saying goes, the bigger they come, the harder they fall – and this is certainly true when it comes to the UK’s position as the fintech capital of Europe. “The UK's divorce from the EU has led to France and Sweden gaining a larger share of the number of fintech deals done within the Union, according to the research firm CBInsights,” writes Finextra. “The survey, European Fintech Trends, showed the difference in the number and regional share of fintech deals among European countries and while the UK still leads the way with a 34% share, it has fallen from the 45% it enjoyed back in 2014.”
The survey, published this week, clearly shows that Sweden and France are the two main beneficiaries of this sharp fall in fintech deals in the UK. Sweden’s share of European fintech annual deals (2013 – 2017 YTD) has risen from 8% in 2016 to 12% in 2017.
As Founder and CEO of Stockholm Fintech Hub, I have witnessed a seismic shift in activity within fintech in Sweden since we launched in February 2017: the country’s tech unicorns are putting the country on the map as a viable destination for investment and this is influencing the fintech sector: Klarna’s 2017 half year net profits were up a massive 138 percent year over year and Ingenico Group bought Swedish payments group Bambora for €1.5 billion over the summer.
Not only that, but there’s considerable interest in the role of fintech when it comes to sustainable development – for more, check out TRINE and our own Stockholm Green Digital Finance, who are changing the world of investments.
At the time of writing, Swedish fintech has attracted €776 million total funding, which translates as 279.38% average revenue growth, across 226 organizations employing 3038 employees – not bad going for a country of just 9.9 million inhabitants. Let’s see if we can drive further growth across the fintech ecosystem and claim the number one spot for European investments.