Financial technology (FinTech) is one of the key areas for artificial intelligence investment growth, according to UK entrepreneurs’ network Tech Nation.

FinTech is the fourth biggest area of AI investment worldwide this year, with nearly $475 million in venture capital funding. The largest are: big data ($872 million); technology, media, and telecoms (TMT, $713 million); and software as a service (SaaS, $588 million).

FinTech AI investment has increased by 120 percent in 2020.

Overall, the UK is the world number three in AI funding, behind the US and China and ahead of the rest of Europe.

Market analysis firm CBInsights recently published a graphic highlighting how FinTech firms now dominate the market capitalisations of the world’s top 500 banks, payment companies, and FinTech firms:

The Economist - Graphic - Top 500 global banks, payment and FinTech firms

The revelation of FinTech’s status in the AI investment world came as Tech Nation announced that 32 AI startups across various sectors have joined the Applied AI Growth Programme, a US-style accelerator designed to “champion and support the UK’s leading AI scale-ups through peer-to-peer learning”.

The initiative is supported by the government through the Office for AI as part of the AI Sector Deal that matches public and private funds to hothouse growth in the technology.

Of the startups joining the UK’s Applied AI Growth Programme, 44 percent of founders are women, and 59 percent of the companies are based outside of London, though 16 percent are in the South East.

Harry Rhys Davies, Tech Nation’s AI Programme Lead, said,

“The UK must take every opportunity to nurture scalable, globally-competitive, homegrown AI companies that solve real problems and have far-reaching impacts on the productivity potential of the economy.

“The Applied AI growth programme aims to do exactly this, taking 32 of the UK’s most exciting AI scaleups, and through peer-to-peer learning and mentoring removing many of the unique barriers to growth that companies in this sector face.

“Backed by leading VCs and led by an exceptionally talented group of founders, this cohort of companies is primed to make an impact.”

Source: Press release