UK FinTech investment falls by a fifth

Investment in the UK FinTech industry fell by 21 per cent in 2025, but the country still attracted more funding than in France, Germany, Belgium, the Nordics, Ireland, China, and Brazil combined, according to new research from KPMG.

The consultancy firm revealed that total UK FinTech investment dropped to $10.96 billion in 2025, down from $13.35 billion in 2024.

This is the lowest level of investment since the Covid pandemic in 2020 when it was just $7.6 billion.

In the EMEA region, the report found total FinTech investment increased marginally in 2025 to $29.2 billion, compared with $26.47 billion in 2024.

KPMG blamed the fall in investment on geopolitical tensions, investor scrutiny and the higher interest rate environment.

Hannah Dobson, partner and UK head of FinTech at KPMG UK, said that the UK FinTech industry is beginning to see momentum return as regulatory clarity improves.

“While 2025 presented ongoing challenges, the UK continues to stand out as Europe’s fintech hub, attracting over a third of total EMEA funding,” she added. “To maintain its position as Europe’s leading FinTech centre, the UK must remain an investor friendly location, a place where innovation and entrepreneurship can thrive and be supported.”

KPMG said the largest deal in Europe in 2025 was the $3 billion fundraising round in November by UK headquartered neobank, Revolut.

The largest deal in Europe outside the UK was the $150 million financing round by Zurich-headquartered small business lender Teylor.

After three years of declining investment, the report found global FinTech investment improved in 2025, rising to $116 billion across 4,719 deals, up from $95.5 billion across 5,533 deals in 2024.

Regionally, activity was strongest in the Americas, which attracted $66.5 billion, up from $55.4 billion in 2024.

Global deal volume fell to its lowest annual level since 2017, which KPMG said reflected continued investor selectivity despite higher capital deployment.

Global fintech M&A activity strengthened, with deal value increasing from $44.6 billion across 829 deals in 2024 to $55.4 billion across 840 deals in 2025, led by strong US activity.