Global FinTech investment stabilises in 2025 after volatility

Global FinTech investment is beginning to stabilise following a prolonged period of contraction, according to new analysis from Innovate Finance.

In the first six months of 2025, investment around the world reached $24 billion across 2,597 deals, representing a six per cent increase on the second half of 2024.

The United Arab Emirates (UAE) overtook the UK in second place for FinTech investment for the first time.

While the UK remains number one in Europe, a $2 billion investment into crypto exchange Binance from state-backed, Abu Dhabi-based MGX knocked it out of second place in the global rankings.

Overall the UAE invested $2.2 billion in the second half of 2025.

During the same six-month period, the UK invested $1.5 billion across 240 deals, ahead of France and Germany combined.

But global competition is mounting, with India ($1.4 billion) and Singapore ($789 million) catching up with the UK market.

The US remains the biggest investor in FinTech around the world, with $11.5 billion raised across 1,082 deals so far this year.

Innovate Finance said that despite funding challenges, UK FinTech companies continue to outperform on core business metrics.

New analysis in the organisation’s report shows that 11 of the UK’s most profitable FinTechs – Allica Bank, Atom, Funding Circle, Iwoca, Monzo, OakNorth, Revolut, Starling, Tandem, Wise and Zopa – generated a combined $3.3 billion in profits before tax in 2024, $848 million in tax charge, and employ over 26,000 people.

“Despite the broader market adjustment, it is encouraging to see signs of stabilisation and resilience, in the UK and across Europe,” said Janine Hirt, chief executive, Innovate Finance. “The UK FinTech sector has proven its value.”

She added that to retain the UK’s global lead, it needs to continue working with industry, government and regulators to improve access to growth capital and innovation.

Her comments come after the UK financial services industry recently welcomed a set of reforms announced by the chancellor designed to “rewire the financial system” and boost investment in Britain.

During her Mansion House speech last week, which took place in Leeds, Rachel Reeves said that the reforms would remove barriers to attracting investment in the sector by reintroducing informed risk-taking into the system following the 2008 financial crash, cutting unnecessary red tape, driving more finance into public markets, and actively helping international companies to set up in the UK.

Speaking at the time, Richard Davies, chief executive of Allica Bank said: “The Leeds Reforms set out a clear and confident vision for how the UK’s financial system can better support growth, innovation, and investment across the economy. As a bank dedicated to established businesses, the reforms also help unlock much-needed capital investment for the vital SME sector – the UK’s real economy.”

He added that ensuring a balanced, competitive environment for these businesses and the UK’s financial system as a whole is “vital to securing growth”, adding that the digital bank is pleased with the steps taken by the chancellor.