UK fintech investment drops, despite government backing

The KPMG report shows that the Americas attracted the most H1 fintech investment.
UK fintech investment drops, despite government backing

UK fintech investment fell in the first half of 2025, amid market volatility and geopolitical uncertainty and despite government plans to boost the sector. The figures, published by accountancy firm KPMG, show that UK fintech investment fell five per cent year-on-year in the first half of this year to $7.2bn.

Hannah Dobson, partner and UK head of fintech at KPMG UK, said: "Although UK fintech investment experienced a slight decline in the first half of the year compared to 2024, it is encouraging to observe the continued resilience of the UK fintech sector despite the challenging macroeconomic environment.
 
“Key initiatives to keep an eye on in the UK’s fintech scene in the next few months include the FCA’s partnership with Nvidia. The new sandbox will allow banks to experiment with computing and AI enterprise software, primarily for testing and research prior to deployment.”

In the period, the KPMG bi-annual Pulse of Fintech report shows there were 216 UK M&A, private equity and VC deals completed, up from 198 last year.

The H1 figures were bolstered by the size of some of the fintech deals, including a $500m VC round by cross-border payments platform Rapyd Financial Network and a $500 million raise by the wealth and asset management technology platform FNZ.

Comparing regions, the Americas attracted the most fintech investment in 2025, with $27bn invested, while Europe, the Middle East and Africa attracted $13.7bn, the only major region to see fintech investment growth in the period.

UK chancellor Rachel Reeves has earmarked the fintech sector as a key cog in the growth of the UK economy.

The chancellor has announced a series of measures aimed at helping fintech firms and encouraging payment innovation in the UK. The chancellor is also said to want Revolut to be fully authorised as a bank as quickly as possible.

Comments
  1. Would you like to write the first comment?

    Would you like to write the first comment?

    Login to post comments
Follow the developments in the technology world. What would you like us to deliver to you?
Your subscription registration has been successfully created.