The UK launches a £1 billion fintech fund—but is it enough to compete with the U.S.?

The United Kingdom has been making giant strides in technology and innovation from attracting tech talent globally, making plans to become a science and technology superpower, committing £2.5 billion in quantum computing, to investing in clean tech initiatives.

But despite being the hotbed of fintech innovation and venture funding in Europe, the UK's fintech industry is still behind the U.S. In 2022, the UK's fintech industry attracted $12.5 billion in investments, compared to the $39.2 billion that was invested in the U.S. fintech industry, according to data from PitchBook.

In a move that would see increased investments in growth-stage financial technology companies, the UK is launching an investment fund with up to £1 billion ($1.27 billion) to bolster its global image as a fintech investment hub.