Scottish fintechs attracted over £305 million in funding in the last 12 months, an increase of over 200% on the previous year.
FinTech Scotland announced the record-breaking investment levels for the year.
Over 60% of funding was raised by fintech SMEs focused on payment and data innovation, while other innovation categories raising significant investment were wealth management and financial regulation.
2022 also saw the number of Scottish fintech SME firms rise 13% to 211, driven by both new fintech start ups and international firms setting up in Scotland.
FinTech Scotland CEO Nicola Anderson said: “I am continuously inspired by the progress achieved by fintech entrepreneurs who continue to accelerate innovation, change and growth across the cluster.
“The record levels of investment in 2022, reinforces the value of of fintech innovation, and propels us to continue driving cluster excellence, build on the recognition the we achieved in 2022, and the role we play in contributing to the growing wider UK fintech ecosystem.
“As we enter 2023, I am excited to be developing the opportunities with entrepreneurs, industry and academic partners, Scottish Enterprise, Innovate UK, Financial Conduct Authority along with other clusters across the UK as we execute our ground breaking Research and Innovation Roadmap.”
Scottish Enterprise CEO Adrian Gillespie said: “The growth of Scotland’s fintech sector demonstrates what can be achieved when all partners work collaboratively to create an ecosystem that is attractive to companies and investors.
“FinTech Scotland has made an enormous contribution to developing our country’s fintech sector since its inception.
“We look forward to continuing to work in partnership with FinTech Scotland and all other stakeholders to deliver even more economic opportunities in this vibrant sector over the coming year.”