The UK remained the top destination for fintech investment in Europe with more than $20.7bn (£16bn) in funding in 2018, according to KPMG.
However KPMG reported the UK lost its global crown as a fintech leader from July with investment tailing off in the second half of the year.
KPMG's Pulse of Fintech report, published today (February 13) revealed total investment activity in the UK in 2018 was almost four times greater than 2017 levels at $5.6bn (£4.3bn) despite the total number of deals dropping.
The levels reached in the UK accounted for the majority of funding in Europe – half of which came from the $12.8bn (£9.9bn) WorldPay acquisition in the first half of the year.
For the second half of 2018, UK investment dropped significantly to a total of $1bn (£775m) compared to $2.8bn (£2.17bn) in the same period in 2017, a trend reflected widely across Europe.
Anton Ruddenklau, global co-lead of KPMG Fintech, said: "Fintech investment trends can be relatively agile but it remains to be seen if the drop in activity in the second half of the year is due to Brexit uncertainties or the start of a wider trend, possibly the end of this fintech cycle as the next generation starts to emerge.
"We have seen a noticeable squeeze earlier in the funding cycle as investors focused on more secure bets. Overall we expect fintech levels to remain robust in 2019 in part due to further consolidation from companies looking to increase scale."