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The Weekly Wrap: all you need to know by Friday COB | Jan 7th

By Gaia Lamperti

January 07, 2022

  • BNPL
  • Compliance
  • Debt Risk
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The Weekly Wrap

The Weekly Wrap is published every Friday and recaps the week’s main stories and deals, as well as upcoming events and announcements. For Prime subscribers only.

The Big Story

The UK’s FinTech sector has seen record investments in 2021, as investors capitalised on new regulations in the industry, recent research has revealed. According to a study by Innovate Finance, the British FinTech industry body, total investment into the country’s FinTech companies hit $11.6 billion last year, an impressive 217% growth from the previous one, second only to US firms globally, which saw $46 billion-worth investment.

The funds were spread across 713 deals, about 11% of all global deals (6,495), with the UK ahead of its European rivals, dominating the continent in terms of capital invested. Overall, $24.3 billion was invested across Europe, and the UK attracted roughly half of the total investment.

“Fintech is delivering on all the biggest global trends and needs, including business productivity, consumer behaviours, financial wellness and inclusion, climate change solutions and cyber security – which is why it is such a magnet for investors,” Janine Hirt, CEO of Innovate Finance, commented.

“We are on the right trajectory in terms of levels of funding and now it’s time to also properly address the funding gap for underrepresented founders, if we are to create a truly sustainable and forward-looking sector,” he added.

The record funding will boost the UK’s FinTech sector as regulators and ministers implement new measures recommended by Lord Hill’s Review of UK listings and the Kalifa Review of FinTech to cement the country’s role as a FinTech hub of the continent.

Deals of the week

  • PayFit raises €254 million to continue transforming in-house payroll for SMEs
  • Innoviti raises $80 million in a first close in ongoing series D round
  • CASHe raises $1.4 billion in Equity Funding from TSLC
  • Timo secures $20 million fresh funding led by Square Peg
  • CellPoint Digital secures a $25 million investment to boost global expansion
  • Finexio completes $10 million funding round to frow ‘Payments-as-a-Service’
  • Cion Digital raises $12 million in Seed funding round

Be on the lookout for

Last October, the HM Treasury announced the start of a consultation to regulate the ‘Buy Now, Pay Later’ (BNPL) industry, a market that has already hit  $100 billion in value. The consultation ended this week and the responses provided by the government aimed to raise awareness about the credit offer promoted to customers, the role or absence of credit checks, the costs involved and understanding of the product by consumers. With the outcome of the initiative to be announced soon, it looks like 2022 will see a strong push towards the regularisation of BNPL.

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