UK loses second spot in international fintech to UAE
The UAE has leapfrogged the UK within the newest fintech market rankings, following a $2bn funding by Abu Dhabi’s MGX in cryptocurrency change Binance.
That is the primary time the UK has misplaced second spot, and comes at a time when international funding in fintech grew 6% to $24bn in the course of the first six months of 2025, in accordance with figures from the UK’s Innovate Finance.
The fintech trade commerce physique stated the market progress is an indication the market is stabilising after earlier volatility.
The US stays primary, elevating $11bn in fintech funding by way of over 100 offers in the course of the interval, in contrast with the UAE’s $2.2bn and the UK’s $1.5bn.
India was not far behind the UK, making up floor with $1.4bn invested, whereas Singapore additionally noticed progress in funding, which reached $798m. In Europe, excluding the UK, $2.9bn was invested in fintechs in the course of the six months, a 28% enhance in contrast with H2 2024. France and Germany noticed robust performances, with $693m and $668m raised respectively.
“Regardless of the broader market adjustment, it’s encouraging to see indicators of stabilisation and resilience within the UK and throughout Europe,” stated Janine Hirt, CEO of Innovate Finance. “The UK fintech sector has confirmed its worth. It’s worthwhile, job-creating and globally recognised.”
For instance, 11 of the UK’s most worthwhile fintechs alone reported mixed earnings earlier than tax of $3.3bn final 12 months, make use of over 26,000 folks and paid taxes value $848m to the UK exchequer final 12 months. These are: Allica Financial institution, Atom, Funding Circle, Iwoca, Monzo, OakNorth, Revolut, Starling, Tandem, Clever and Zopa.
However Hirt warned that the UK should proceed to enhance entry to progress capital and innovation. “We at Innovate Finance are proud to play a key function in a brand new initiative with the Metropolis of London Company and the British Enterprise Financial institution to assist join scaleups with traders. This may even assist join rising corporations with the brand new institutional capital unlocked by the Mansion Home Accord.”
Innovate Finance stated: “Whereas AI and frontier applied sciences dominate the headlines, fintech stays the UK’s most instant, scalable and investable progress alternative – with a confirmed monitor report of delivering unicorns, jobs and exportable innovation.”
Talking on the eleventh annual Innovate Finance International Summit in London in Might, UK chancellor Rachel Reeves promised continued authorities backing to the fintech sector.
She informed the viewers: “As chancellor, I’ve at all times stated it’s my job to again the builders, the wealth creators and the job creators. So, my job is to again all of you on this room. In any case, it’s due to your work that the UK is a world chief in fintech.”
In accordance with current analysis by Boston Consulting Group, the worldwide fintech sector noticed its revenues enhance thrice that of the finance sector as an entire in 2024, because it entered an “period of maturity”.
Regardless of lowered funding in fintech corporations, the companies are maturing and driving up revenues. International fintech revenues grew by 21% final 12 months, a couple of third larger than the expansion in 2023, when a 13% enhance was reported.
