In the last 12 months, Scottish financial technology (fintech) firms received more than £305m in funding, representing an increase of over 200% on the previous year.
More than 60% of this was raised by small and medium-sized enterprises (SMEs) focused on payment and data innovation, while wealth management solutions and financial regulation firms also made up a significant proportion of those receiving investment.
The latest figures compiled by industry body FinTech Scotland also showed that 2022 saw the number of Scottish fintech SMEs increase to 211 - up 13% during the year - driven by both new start-ups and international firms setting up in Scotland.
The organisation's chief executive Nicola Anderson said: “I am continuously inspired by the progress achieved by fintech entrepreneurs who continue to accelerate innovation, change and growth across the cluster.
“The record levels of investment reinforces the value of of fintech innovation, and propels us to continue driving cluster excellence, build on the recognition the we achieved in 2022, and the role we play in contributing to the growing wider UK fintech ecosystem.”
Adrian Gillespie, chief executive of Scottish Enterprise, added: “The growth of Scotland’s fintech sector demonstrates what can be achieved when all partners work collaboratively to create an ecosystem that is attractive to companies and investors.
“FinTech Scotland has made an enormous contribution to developing our country’s fintech sector since its inception.”
FinTech Scotland was founded in January 2018 as a joint initiative by University of Edinburgh, Lloyds Banking Group, HSBC and Scottish Enterprise.
Now celebrating its fifth birthday, the organisation has confirmed its strategy for the coming year, to continue leveraging cluster excellence credentials to drive innovation and build on collaboration with other fintech centres around the UK.
This will also include a focus on supporting fintech SMEs scale-up through increased collaboration with the 30 FinTech Scotland partners, as well as economic initiatives with Smart Data Foundry and a new centre of excellence for innovation in financial regulation.
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