In collaboration with fintech investment firm H2 Ventures, KPMG has found that the UK has 13 companies in the latest top 100 list, down from 18 in 2015.

An increase in global competition was also observed with 17 countries represented in the top 50, up from 13 in 2015.

Despite this, the UK is second only to the United States in the number of ranked firms (24).

UK firm Atom Bank made it into the top 10 at number six.

However, its presence is dwarfed by the five Chinese firms that rank in the top 10, four of which are in the top five.

Warren Mead, global co-lead of KPMG’s fintech practice, said: “This year’s Fintech 100 shows that the UK continues to be a powerhouse for global fintech.

“The UK’s regulatory framework encourages innovation, there is excellent access to capital and skills, and London is the world’s leading financial centre.

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“But the emergence of China as a market leader, and the increasing globalisation of fintech, means that UK policy makers, regulators and the industry will have to continue to work hard to maintain our position.”

Toby Heap of H2 Ventures, commented: “…The continued dominance of China, which rapidly rose last year to take the top spot, tells only part of the story.

“We are seeing the emergence of exciting fintech players in countries across the world, from India to Israel, from Portugal to the Philippines.”

The Fintech 100 was selected following global research relating to five factors:

1. Total capital raised

2. Rate of capital raising

3. Geographic and sector diversity

4. Consumer and marketplace traction

5. X factor: degree of product, service and business model innovation

The top 10 companies in the Fintech100 were:

1. Ant Financial – China

2. Qudian (Qufenqi) – China

3. Oscar – USA

4. Lufax – China

5. ZhongAn – China

6. Atom Bank – UK

7. Kreditech – Germany

8. Avant – USA

9. Sofi – USA

10. JD Finance – China