Investment into the UK’s fintech sector brought in $7.2bn for the first half of 2025, a 5% drop year-on-year.
Revealed in KPMG’s Pulse of Fintech report, UK fintech investment, while outnumbering the rest of European investment, continues to remain resilient in the face of fluctuating market conditions.
The report noted investment is slightly below the $7.6bn raised in H1′ 2024, but overall transactions increased to 216 from 198 deals. This was largely driven by BlackRock’s $3.1bn acquisition of Preqin, an assets data and insights provider.
Other notable investments in the first half of the year were Rapyd’s and FNZ’s $500m funding rounds.
However, as the year progressed, investment appears to have regressed. Investment began strong in Q1 as 125 deals brought in $5.2bn of investment. This dipped in Q2; $2bn was invested across 91 deals.
Various factors have contributed to the slight dip in UK fintech investment in the second quarter, but none more so than US President Donald Trump’s yo-yoing tariff threats to UK imports and services.
Another factor is the growing number of UK fintechs either exiting or considering leaving the market. Wise is the latest, announcing plans to shift its primary stock market listing to the US while maintaining a secondary listing on the London Stock Exchange.
Some of the UK’s homegrown fintech success stories, the likes of Revolut and Monzo, have also contemplated the idea of an IPO in the US.
Hannah Dobson, Head of Fintech at KPMG UK, acknowledged the “challenging macroeconomic environment” the country faced at the start of the year, but praised its resilience.
“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,” she said.
A fluctuating decade so far
The last five years have so far been one of fluctuating market conditions, global pandemic ramifications, and the emergence of technologies offering opportunities for new investment.
UK investment for H1’ 2021 set record highs, reaching $24.5bn. This came off the back of the surge in adoption of digital payment methods as the pandemic and the UK government pushed for customers to use contactless payments.
H1’ 2022 and H1 2023 reversed the trend, recording investment levels of $10.09bn and $6.05 bn respectively.
This drop was largely attributed to the ongoing war between Russia and Ukraine as investor confidence took a dramatic turn in light of high inflation across global markets.
While a slight return to form in H1’ 2024 and 2025 of $7.6bn and $7.2bn may have brought new optimism for the UK fintech market, it is still substantially far away from the highs of 2021.
Global fintech also dips
It is not just the UK market which has experienced a dip in fintech investment. The global market’s $44.7bn fintech investment was 2,216, the lowest amount of overall deals since 2020.
The Americas (North & South America) led overall investment across all other regions with $27bn investment, a sharp decline from the $35.7bn generated from H1’ 2024. AI securities operation provider ReliaQuest was one of the major drivers of investment growth in the Americas, bringing in $500m in investment as part of a funding round that closed in March.
While the UK surpassed investment levels from the rest of its European counterparts, the European, Middle East and Africa (EMEA) regions increased its investment to $13.7bn from $11.1bn in the second half of 2024. EMEA was the only region which saw investment increase from last year in H1’ 2025.
Asia-Pacific saw one of the largest drops in investment from last year, falling from $7.3bn in H1’ 2024, to $3.9bn the same period this year.
