UK fintech startups have reached a record level of $2.9 billion of funding in the first half of this year, across a total of 123 deals.

The deal data, compiled by Innovate Finance, paints a positive picture of the sector despite the turbulent political and economic climate, with investment on track to eclipse last year’s record of $3.3bn.

Deal volume has declined by 30% year-on-year, continuing a steady decrease that began at the start of 2018, but the value of individual deals has been much larger, a sign of the growing maturity of the UK fintech sector.

Greensill Capital and OakNorth attracted the two largest deals this year, with $880 million and $440 million respectively.

Challenger banks including OakNorth ($440m), Monzo ($147m) and Starling Bank ($98m) dominated the charts with the most significant investments. The payments and foreign exchange sectors also experienced large investments with companies such as Checkout.com ($230m), WorldRemit ($175m) and GoCardless ($76m) raising further rounds to support their growth.

In terms of the number of deals, London fintechs accounted for 78% while other parts of the UK made up 22%.

Commenting on the findings, Charlotte Crosswell, CEO of Innovate Finance, says: “Investment into the UK fintech sector shows no sign of slowing down. The flow and impressive size of individual investments demonstrate an ecosystem that is showing signs of growing maturity. It is hugely encouraging to see evidence of this resilience and growth despite the uncertainty and challenging times ahead.”