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New figures from KPMG reveal that UK FinTech investment dropped by five per cent in the first six months of 2025.
Data from the consultancy found that total investment dropped from $7.6 billion during the same period of last year to £7.2 billion in 2025.
The company said that geopolitical uncertainty, market volatility and global concern around macroeconomic growth rates have contributed to more subdued levels of investment compared to the record highs of 2021.
The research follows the publication of figures by Innovate Finance last month which revealed that the United Arab Emirates (UAE) had overtaken 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.
While overall investment was down in the first six months of the year, the KPMG figures show that there were 216 UK M&A, PE and VC FinTech deals completed, up from 198 in the first half of 2024.
The investment total so far this year has been strengthened by the size of many of the deals, including the $3.1 billion buyout of private markets data group Preqin by Blackrock, a $500 million VC round by cross border payments platform Rapyd Financial Network, and a $500 million raise by the wealth and asset management technology platform FNZ.
“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,” said Hannah Dobson, partner and UK head of FinTech, KMPG UK. “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 tinker with computing and AI enterprise software, primarily for testing and research prior to deployment.”
Karim Haji, global and UK head of financial services at KPMG said that in the second half of the year globally digital assets and currencies are “well positioned to see investment grow even more.”
