UK regains second spot in world fintech funding rating

Funding in monetary expertise (fintech) reached $53bn globally in 2025 after a 21% improve in funding in comparison with the earlier 12 months, in response to Innovate Finance’s annual report.

The second half of 2025 additionally noticed the UK regain second spot within the world rating after it was leapfrogged by the United Arab Emirates (UAE) within the first half of the yr on the again of giant cryptocurrency funding by Abu Dhabi’s MGX.

On publishing its report, fintech trade commerce physique Innovate Finance mentioned 2025 noticed fintech funding return to progress after years of decline. A complete of 5,918 offers accounted for the $53bn invested in fintech globally.

The identical numbers reported this time final yr revealed world fintech investments fell 20%, with the UK seeing a 37% drop, between 2023 and 2024, when world funding in fintech fell to $43.5bn and UK funding fell to $3.6bn.

This yr’s figures reveal funding within the UK reversed its decline, rising 0.4% and holding agency at about $3.6bn, nevertheless it stays 37% decrease than the overall invested in 2003. There was, nevertheless, an 11% upsurge within the UK through the second half of 2025, the place it regained second spot, which was beforehand occupied by the UAE within the first six months of the yr.

“Our newest funding figures present the resilience, power and world competitiveness of our phenomenal UK fintech ecosystem,” mentioned Janine Hirt, CEO of Innovate Finance. “Attracting a powerful $3.6bn in funding in 2025 – and once more claiming second place globally behind solely the US – the UK has as soon as once more confirmed its credentials as a world-leading monetary innovation and expertise hub.”

However she careworn that different nations are shortly gaining tempo, including: “Different nations are shortly gaining tempo, nevertheless, and so to take care of our world lead, it’s crucial that we push forward on delivering key regulatory reforms with velocity, improve entry to progress capital, and proceed to foster an setting which is engaging for each home and worldwide entrepreneurs and buyers.”

The US dominated the market, investing $25bn in fintechs. Shut behind the UK in third place was India, which obtained $3.4bn; the UAE at $2.5bn; and Singapore reaching 2$bn, rounding out the highest 5. Forming the mid-tier cluster are Brazil, Canada and Mexico, which all raised between $1.3bn and $1.6bn. This progress is linked to the rising adoption of digital banking, funds and funding platforms.

In relation to the highest 10, solely the US, UK, India and Germany have constantly appeared within the rating over the previous decade.

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, telling the viewers: “As chancellor, I’ve all the time mentioned 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 spite of everything, it’s due to your work that the UK is a world chief in fintech.”

In response to latest analysis by Boston Consulting Group, the worldwide fintech sector noticed its revenues improve thrice greater than the finance sector as an entire in 2024, because it entered an “period of maturity”.

Regardless of lowered funding in fintech companies, the companies are maturing and driving up revenues. International fintech revenues grew by 21% final yr, round a 3rd greater than the expansion in 2023, when a 13% improve was reported.