Tracxn, a leading global SaaS-based market intelligence platform, has released its FinTech - UK Semi-Annual Funding Report - H1 2023. The report, which is based on Tracxn’s extensive database, provides insights into the UK FinTech space.

The UK Fintech startup ecosystem ranked second across the world in terms of funding in H1 2023, similar to last year. In the first half of 2023, the UK’s Fintech startup ecosystem raised total funding of $2B. However, funding has been declining across countries and industries in 2023, and the UK is also experiencing the same. 

Total funding into the UK FinTech sector dropped by 78% to $2 billion in H1 2023 from $9.1 billion in H1 2022. Funding raised in this space also fell 29% in the first half of 2023, when compared with H2 2022. This decline is largely due to a fall in early-stage investments in H1 2023, which fell 43% and 71% when compared with H2 2022 and H1 2022, respectively. 

Late-stage funding in H1 2023 in this space saw a decline of 17% and 76% as against H2 2022 and H1 2022, respectively. However, seed-stage investments in H1 2023 saw a slight increase of 5.5% from the second half of 2022. 

Q2 2023 contributed to almost 66% of the funds raised by the overall sector in H1 2023. FinTech companies in the country attracted investments worth $673 million in Q1 2023 and $1.13 billion in Q2 2023. The first quarter of this year has become the least funded quarter since 2020.

In the past year-and-a-half, this space has seen hardly any activity in terms of IPOs. Only one UK-based FinTech startup went public in H1 2022, following which there were no IPOs in H2 2022 and H1 2023. 43 acquisitions were recorded in the first six months of 2023, as against 40 in H2 2022 and 44 in H1 2022.

There was only one new entrant to the Unicorn club in the first half of 2023, as against five in the same period last year and one in H2 2022. Further, three out of the seven 100M+ fundings in the UK Tech space in the first half of 2023 are from the FinTech sector. 

Cryptocurrencies, RegTech and Banking Tech are the top-performing segments in the FinTech sector, based on funding in H1 2023. The Cryptocurrencies segment is the highest-funded segment, accounting for almost 34% of the total funding received in the UK FinTech space in H1 2023. While funding into cryptocurrency startups across the globe is witnessing a declining trend, the UK region is showing promise as the highest funded segment in the sector. 

Among cities, London contributed more than 75% of the funds raised in the country within the overall sector. FinTech companies based in London attracted investments worth $1.5 billion in H1 2023, followed by Colchester ($150 million) and Eastbourne ($98.1 million). 

Augmentum, Lloyds Banking Group and Triple Point were the top investors in the UK Fintech space in H1 2023. Triple Point, Forward Partners and Founders Factory were the lead investors in seed-stage investments. CommerzVentures, Augmentum, and Northzone were the most active investors in the early stage. HSBC Corporate Ventures, SoftBank Vision Fund and Rocket Internet were the most active investors in the late stage

Eventus, a leading global provider of multi-asset class trade surveillance, market risk and algo monitoring solutions, announced today that Advantage Futures has deployed the firm’s Validus platform to meet its trade surveillance needs. Advantage is among the highest volume clearing firms in the futures industry.

Advantage made the decision to migrate to the Eventus software solution following extensive research on companies in the space and testing of the Validus platform to ensure the features met its needs.

Joseph Guinan, Chairman & Chief Executive Officer of Advantage Futures, said: “I’ve had great respect for Eventus CEO Travis Schwab for more than 15 years. The company has thrived under his leadership, and its Validus trade surveillance platform is now an important component of the Advantage surveillance program.”

Guinan said the firm chose Validus for its strong machine learning capabilities, customizable features that allow users to change parameters from one exchange to another, ease of use and knowledgeable, responsive team.

The Validus platform is used widely throughout the futures industry and other asset classes. The software solution and expertise within the firm have earned the company more than 30 global and regional awards in the past five years.

Validus’ use of automation, including machine learning, speeds up alert triage and ensures the most actionable alerts are escalated for further investigation. The platform handles alert generation covering billions of messages per day, around the clock, providing comprehensive coverage across trading flows. Validus is uniquely able to ingest data in any format from any source, streamlining the ability to onboard without tying up the clients’ resources.

Episode Six (E6), a leading global provider of enterprise-grade payment processing and ledger infrastructure, today announced the appointment of Brian Muse-McKenney as Chief Revenue Officer (CRO), reporting to E6’s CEO and Co-Founder John Mitchell.

As CRO, Muse-McKenney will bring his deep knowledge of the payments industry and global experience in Asia, Europe and North America to drive E6’s global growth and expansion of the customer base as the company enters its next phase of accelerated growth. Muse-McKenney will also help enhance E6’s digital and marketing strategy to build upon the company’s existing global footprint and success.

Prior to joining E6, Muse-McKenney served as Chief Business Officer, HSBC Platforms and as Chief Innovation Officer, HSBC Global Payments Solutions, where he built out next-generation payments platforms and propositions for businesses and institutions. Muse-McKenney also formerly served as the Chief Executive of PayMe from HSBC, where he first partnered with E6 and where he led PayMe to become Hong Kong’s leading e-wallet provider.

“As one of our trusted partners and long-time customers, we are excited to officially welcome Brian as E6’s first-ever CRO,” Mitchell said. “With his global experience, in-depth knowledge of our business and deep understanding of the challenges that banks and companies face in the payments space, Brian will help us reach new heights in expanding our footprint and helping banks and other organizations modernize with our flexible, cloud-native TRITIUM® platform.”

Muse-McKenney’s long-standing partnership with E6 also included serving as a Non-Executive Director of E6, from 2020 through June 2023, a position he held after HSBC led the Series A investment round in E6.

“As an early adopter of the TRITIUM® platform, I saw firsthand the power and potential of E6’s modern technology,” Muse-McKenney said, “I know from experience that payments modernization, and the desire to create compelling customer propositions, are pressing needs for banks, fintechs and brands everywhere. Joining E6 as CRO, I am excited to be in the position to solve those needs for customers all around the world.”

Muse-McKenney’s appointment closely follows E6’s recent $48 million Series C financing, and to date, the company has raised nearly $100 million.

Lumi, an Australian company specialised in lending to small and medium-sized enterprises (SMEs), has successfully concluded a capital raise of $15m.

This fundraise, aimed at boosting the firm’s growth, saw participation from both new and existing investors, according to a report from Australian FinTech. New to the roster was Harel Insurance and Finance Group (Harel), marking the firm’s maiden investment on Australian shores. Other contributors included the Josh Liberman Investment Group, Arbel, Perennial, and Stellan Capital.

Lumi, a brainchild of Yanir Yakutiel, established in 2018, provides SMEs in Australia with business loans and lines of credit. Ranging from $5,000 to $500,000, these offerings come with flexible terms, quick application processes, and a maximum loan term of 48 months. Lumi’s proprietary technology simplifies access to working and growth capital for SMEs.

The $15m raised will be channelised towards further bolstering Lumi’s balance sheet and enriching its product portfolio. Lumi stays dedicated to the broker distribution model, and expects business originated through brokers to increase. The newly raised capital will also enable Lumi to present brokers with an expanded range of products, thereby augmenting their ability to serve their clients in a more comprehensive manner.

Overall, this capital raise and Harel’s investment uniquely position Lumi to extend its services and continue aiding SMEs throughout Australia.

GIMO - a startup that provides a flexible salary payment solution towards the goal of financial security for low- and medium-income workers in Vietnam, officially completed the Series A funding round, with a total mobilized capital of up to 17.1 million USD.

Accordingly, this funding round including equity and loan was completed after only 5 months since GIMO announced to receive US$5.1 million in February. The deal was led by TNB Aura Venture Fund with participation from existing GIMO investors such as Integra Partners, Resolution Ventures, Blauwpark Partners, ThinkZone Ventures and Y Combinator. In addition, the funding round also saw the participation of new investors including Genting Ventures, TKG Taekwang, George Kent and AlteriQ Global.

Mr. Charles Wong, Co-Founder and CEO of TNB Aura Foundation shared: “We want to work closely with GIMO to help remove barriers to financial access for millions of unskilled workers in Vietnam. Especially in the current volatile economic context, the mission is to help millions of Vietnamese unskilled workers access digital financial solutions for them to "Live better. Making more fun” of GIMO is more important than ever.”

GIMO is currently providing a flexible payment solution for nearly half a million workers from medium and large multinational companies in Vietnam. Despite the economic difficulties in 2023, GIMO still recorded a growth rate of 15% and aims to serve 2.5 million workers by 2025.

“We believe that Vietnam is the right market to apply a flexible salary payment solution, providing comprehensive and stable finance for unskilled workers. At AlteriQ, we are continuously expanding and strengthening our relationships with leading businesses in many fields around the world, and the decision to finance a partnership with GIMO is our first deal in Vietnam. Therefore, we are very excited to accompany Mr. Quan as well as the GIMO team to expand the scale of operations, thereby contributing to improving the financial health of the unskilled labor community in Vietnam", said Mr. Zhi Yong Heng - CEO of AlteriQ Global.

The Series A investment will be used by the company to drive innovation and market scale, specifically as follows:

• Product development: The investment is used to strengthen research and development activities for new products, through which the company will launch many community-oriented products and initiatives, helping unskilled workers avoid the risks of debt traps and black credit, contributing to improving financial safety and well-being.
• Adding value for employees : With a commitment to always bring positive value to unskilled workers, GIMO will continuously innovate and improve to optimize user experience, at the same time deploy more social activities as well as expand the network to reach more unskilled workers.
• Developing strategic partnerships : GIMO will promote strategic cooperation with partners, thereby launching cooperation programs to support disadvantaged workers.

“We are very excited to officially complete the Series A funding round. It can be said that this round of funding shows the strong confidence and support of investors in GIMO. This investment will bring us closer to our vision of promoting financial inclusion; help improve products and bring positive impact to disadvantaged communities in Vietnam.” Mr. Nguyen Anh Quan - General Director and Co-Founder of GIMO shared.

According to KPMG's 2022 report, users typically receive early pay two to three times per month – the same frequency as weekly or biweekly paychecks, to cover different fees. The flexible salary solution not only helps them to cover their expenses but also their daily living expenses, thereby helping them feel more secure in life.

Travelex, a market-leading foreign exchange brand, has launched a new automated, self-serve currency kiosk that affords customers more choice and convenience in their foreign exchange transactions.

Installed within the Travelex landside departures store at Heathrow Terminal 2, the first-of-its-kind kiosk enables customers to place their order at a touch screen kiosk before collecting their cash from a designated ATM machine. The process is fully automated, meaning no human interaction is required.

Customers will be able to choose from an initial five currencies that reflect the main currency profiles in Terminal 2 (Euro, Swiss Franc, or US, Canadian or Australian Dollar), and - unlike ATMs - a cash withdrawal limit imposed by financial institutions won’t apply, enabling customers to order more currency than permitted at a traditional ATM.

An initial two kiosks and three designated ATMs have been installed at the Heathrow Terminal 2 store. To ensure Travelex continues to meet the varying needs of its customers, the ATMs also provide regular ATM services for those who wish to directly withdraw either GBP or a smaller amount of foreign currency. The kiosks will be supported by Travelex sales consultants, who will be on hand to assist with any queries and support customers with their transactions if required.

The launch of the kiosk marks the latest milestone in a new digital-focused approach from Travelex. As part of this new approach, the company is increasing investment in developing digital solutions, launching more innovative products, and moving more nimbly in the style of a tech brand, whilst ensuring the customer remains at the heart of its product design.

Earlier this year Travelex relaunched their Travel Money Card app in partnership with KAYAK, enabling customers to order a Travelex Money Card or cash, manage their card, and search for flights, stays and rental cars through the app. Late last year the company also launched the retail FX industry’s first ATM click & collect service in the UK and Australia – a service that has subsequently been expanded across Heathrow, Manchester and Birmingham airports in the UK. The company has also been increasing investment into ‘digital first’ airport experiences, including self-service stores and ATMs, across their international store portfolio.

Richard Wazacz, Travelex CEO, said:

"Convenience is at the heart of our proposition, and so we are really excited to launch a new digital product that complements our existing services and further simplifies our customers’ access to travel money. As we continue to digitally transform both the front and back end of our business, the automated currency kiosk represents another significant landmark in that journey.”

Fraser Brown, Director of Retail, Heathrow said:

“I am delighted that Heathrow’s longstanding partnership with our foreign exchange provider Travelex continues to grow and evolve. The launch of fully automated FX services is part of Heathrow’s recent digital acceleration, offering passengers greater choice on how they journey through Heathrow and supporting our vision of delivering the best airport service in the world.”

NetGuardians is to deploy its AI-enabled payment fraud prevention solution at Jordan-based bank, Bank al Etihad as the two institutions continue to counteract financial crime. By choosing to work with the award-winning Swiss fintech, Bank al Etihad will strengthen its fraud prevention capability, further mitigating the risk of fraudulent activity across all payment channels.

NetGuardians develops AI-based financial fraud and anti-money laundering solutions that currently protect more than USD7 trillion in assets at banks around the world, including Middle East, Europe, Africa, and APAC. Its software protects the institutions in real-time, monitoring all transactions and providing a risk score by assessing them against the usual customer profile; using innovative behavioural analytics, machine learning, and artificial intelligence. This procedure reduces the frequency of false positives, improving detection rates while ensuring a seamless customer experience and lowering operational costs. 

Of the fraudulent transactions NetGuardians detected within the last year, 94% were related to Authorized Push Payment Fraud (APP) a scam where the victim is tricked into making large bank transfers to an account posing as a legitimate payee. The average value of these malicious and hard-to-identify payment requests is USD9,000, while USD500,000 was the largest attempted sum. The global proliferation of digital payments and transactions has made it easier for criminals to succeed in carrying out financial scams.

Since its establishment in 1978, Bank al Etihad has emerged as one of Jordan's premier financial institutions. Guided by its unwavering commitment to digital transformation, the bank has placed technology, entrepreneurship, and innovation at the forefront, shaping its strategic approach towards instant and improved access to its comprehensive range of products and services. Bank al Etihad fosters a culture that empowers customers through technology – individuals, entrepreneurs, and companies alike – helping them bank on their own terms anytime and anywhere.

Jonathan Somers, Regional Sales Director MEA at NetGuardians, said: “With our existing experience of working with banks across the region, we are delighted to be partnering with Jordan’s Bank al Etihad. Our payment fraud solution is perfect for a bank that places as much emphasis on customer care as Bank al Etihad does. With NetGuardians alongside, Bank al Etihad clients can have confidence that their assets will always be protected in real-time, even as financial scams evolve.”

Zeina Asfour, Director of Operations Risk at Bank Al Etihad, said: “The NetGuardians AI-based fraud protection solution is an obvious choice for Bank al Etihad. As a forward-thinking financial institution, we are constantly on the lookout for new and innovative ways to improve the delivery of our products and services to our customer community. Employing AI and machine learning to monitor payment transactions in real-time, improving detection and minimizing customer experience friction was an easy decision.”

Clicksendnow, market-challenger in African remittance payments, and  ThetaRay, a leading provider of AI-powered transaction monitoring technology, announced today the implementation of ThetaRay’s SONAR platform to provide automated transaction monitoring and sanction screening to support ClickSendNow’s company growth.

The partnership will enable Clicksendnow, which provides smart, smooth and simple money transfers to over 30 countries in Africa, to scale efficiently and in compliance with regulatory requirements. By implementing ThetaRay’s award-winning SONAR AML system, ClickSendNow will be able to detect the earliest signs of sophisticated money laundering activity and mitigate risk. 

“Our goal of simplifying remittance payments across Africa is only possible by leveraging AI for our AML needs,” said Tyler Slement, CEO of Clicksendnow. “ThetaRay’s analysis and presentation of transaction database norms and patterns are unique in the market and we are excited to partner with them to scale our business securely and efficiently.”

ThetaRay full-stack detection platform leverages a combination of rules-based, AI/ML risk-based and network visualization to provide maximum insights into financial networks. The cloud-based SaaS system reduces false positive alerts by up to 90%, cuts analyst time in half and detects 100% of unknown unknown cases quickly and transparently.

“As the world continues to move toward the goal of 3% on remittance payments, it is critical that we build a financial network that is both efficient and safe,” said Peter Reynolds, CEO of ThetaRay. “We’re excited that Clicksendnow has joined a fast-growing cadre of Africa-based fintechs that have chosen ThetaRay’s AI-powered system to offer excellent customer experience and state-of-the-art AML compliance to its customers.”

ThetaRay will be hosting events for Africa-based fintechs in Johannesburg, South Africa on July 26th and Nairob, Kenyai on August 1st.