UK fintech funding nudged up by 2.2pc year on year in the first quarter of 2019 to $645m (£497m).
Venture capitalists invested across 42 deals, cementing Britain as the top fintech market in Europe.
The UK accounts for 11pc of the global fintech industry, employing more than 75,000 people with a forecast to surge beyond 100,000 by 2030.
Germany was the second top market in Europe, with $588m invested across 15 deals, according to CB Insights, a research company which tracks VC and start-ups. Berlin-based challenger bank N26 became the Germany’s first unicorn in Q1 2019 following a $300m investment, valuing the business at $2.7bn.
As a whole, $1.7bn was invested in European fintech across 102 deals, up 58pc quarter on quarter from $1.08 invested in 82 deals in Q1 2018.
Global VC fintech funding was worth $6.3bn in Q1 2019, a drop of 13pc year on year, although the number of deals (445) increased 4pc quarter over quarter.
India was the top Asian market for VC-backed fintech funding in Q1 2018 with $286m in funding, surpassing China with $192m — a drop in investment of 89pc. India and China both saw 29 deals. As a whole, $875m was invested in Asian fintech through venture capital, the first time less than $1bn was invested in the region in five quarters.