In the first half of 2025, UK fintech investment decreased by five percent year-on-year to $7.2 billion, according to KPMG. This decline occurred despite market volatility, geopolitical uncertainty, and government plans to boost the sector. Hannah Dobson, partner and UK head of fintech at KPMG UK, noted the resilience of the UK fintech sector in this challenging environment. Key initiatives include the FCA’s partnership with Nvidia to experiment with AI and computing within a new sandbox.
During this period, KPMG’s Pulse of Fintech report recorded 216 UK mergers, acquisitions, private equity, and VC deals, an increase from 198 last year. Notable deals included Rapyd’s $500 million VC round and FNZ’s $500 million raise. Regionally, the Americas led with $27 billion in fintech investments, followed by Europe, the Middle East, and Africa with $13.7 billion, marking growth only in these regions.
UK Chancellor Rachel Reeves has identified the fintech sector as crucial for UK economic growth, announcing measures to support fintech firms and payment innovation. Additionally, she aims for Revolut to gain full bank authorization swiftly.