2023 has seen a stark comparison to the previous year with no European FinTech deals reaching the $1bn mark, compared to two in 2022. The UK accounted for the majority of the top 10 deals with seven deals making the list. Blockchain & Digital Asset technologies was the most active FinTech subsector on the list with three deals. This was followed by PayTech and WealthTech which both had two deals each on the list.
Blockchain & Digital Asset technologies continues to attract interest from investor with best applications still under review and digital assets such as Bitcoin bouncing back. Bitcoin’s price increased 155% in December 2023 from December 2022. The number of jurisdictions creating regulatory frameworks has also significantly increased in 2023, for example MiCA in the EU which cements Blockchain & Digital Assets importance going forward in 2024.
European PayTech’s total transaction value is projected to reach $2,144bn in 2024, a 20.1% share of global payments. Europe’s total transaction value is expected to show an annual growth rate (CAGR 2024-2027) of 12.6% resulting in a projected total amount of $3,061bn by 2027.
Digital banking in Europe saw a major increase in usage during the Covid pandemic although figures in the following years have not really increased so dramatically, peaking at an average of 61.9% by the end of 2022, across all EU countries. EU countries that have the most online banking penetration are Finland (94.5%), Ireland (84.9%) and Sweden (84.5%).
Abound, a British consumer lending financial firm, had the largest European FinTech deal in 2023 after raising £500m ($601m) in their latest venture funding round from K3 Ventures, Hambro Perks Ltd. and SR Ventures. The company intends to use the funds to expand the number of customers it lends to, to grow its headcount, and to develop its business-to-business offer. Established in 2020 under the leadership of Gerald Chappell, who serves as the CEO, and Dr. Michelle He, Abound is a financial service that leverages Open Banking and artificial intelligence to offer loans ranging from £1,000 to £10,000, with repayment terms extending up to 5 years. As of now, the company has experienced consistent monthly growth of 30% and has assisted more than 150,000 customers through its platform. It’s worth noting that Abound operates as the consumer-facing division of Fintern Ltd, which also owns Render, the proprietary technology employed by Abound to facilitate intelligent lending solutions.
