The UK has held on to its title of fintech capital of Europe, accounting for just under half of Europe’s fintech investment for 2020.

This is according to investment figures released by Innovate Finance, the industry body for UK fintech. It revealed that $4.1bn venture capital and growth private equity was invested across 408 deals in the UK in 2020, only topped by the US in total capital raised.

The UK had more fintech deals and capital invested than Germany, Sweden, France, Switzerland and the Netherlands combined. This is despite a 9% year-on-year drop in investment in UK fintech thought to be caused by the Covid-19 pandemic.

Global fintech investment for 2020 reached $44bn across 3,052 deals, a 14% increase from 2019, demonstrating the resilience of the sector.

Within Europe, Germany was second with $1.4bn of investment across 71 deals, up 50%. Sweden ranked third with $1.3bn of capital raised.

Notable deals included a $650m investment in Swedish startup Klarna, and $580m invested in UK challenger bank Revolut. German challenger N26 also received $570m.

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Charlotte Crosswell, CEO of Innovate Finance, commented:

“Given the tough and turbulent year we’ve experienced, it’s very encouraging to see strength and resilience in the global FinTech sector’s ability to raise capital. Now more than ever, we should celebrate the strong position the UK has carved out at an international level. We are a world-leading FinTech hub, and as the figures reveal, the epicentre of FinTech in Europe – despite the many challenges thrown our way.

“The pandemic has created new barriers for many companies seeking funding, so it is all the more vital that we support our innovative companies to fuel their future success and growth. The upcoming FinTech Strategic Review is a key step on that path that will help to ensure long-term, sustained investment.”

Read More: Over a quarter of Brits now have a digital-only bank account.