H1 2025 FinTech Investment Landscape: Global FinTech Investment Stabilises, Competition Increases, the UK Loses its Second Position to the UAE

Global FinTech investment is stabilising following a prolonged period of contraction, according to new analysis from Innovate Finance, the industry body representing UK FinTech. This marks the end of the growth-at-all-costs mindset and a more focused approach to investment going forward.

In the first half of 2025, global FinTech investment reached $24 billion across 2,597 deals, a 6% increase on H2 2024. The US remains dominant, with $11.5 billion raised across 1,082 deals, while other markets like India ($1.4 billion) and Singapore ($798 million) are gaining ground.

For the first time the UAE is the second-largest FinTech market globally with $2.2 billion in investment mainly due to the $2 billion deal of Binance in H1 2025.

The UK is now the third-largest FinTech market globally with $1.5 billion and 240 deals in the first half of the year and first in Europe, ahead of France and Germany combined. However, global competition for capital is increasing with India and Singapore not far from the UK.

UK FinTech Remains Strong

Despite funding challenges, UK FinTech companies continue to outperform on core business metrics. New analysis in the report shows that 11 of the UK’s most profitable FinTechs – Allica Bank, Atom, Funding Circle, Iwoca, Monzo, OakNorth, Revolut, Starling, Tandem, Wise and Zopa – generated a combined $3.3 billion in profits before tax in 2024, $848 million in tax charge, and employ over 26,000 people.

Global Trends: Stabilisation and Strategic Shifts

The US remains dominant, with $11.5 billion raised across 1,082 deals, while other markets like India ($1.4 billion) and Singapore ($798 million) are gaining ground.

FinTechs across the rest of Europe excluding the UK raised $2.9 billion in H1 2025, up 28% from H2 2024. France and Germany saw strong performances, with $693 million and $668 million raised respectively.

Unlocking Growth Potential

While AI and frontier technologies dominate the headlines, FinTech remains the UK’s most immediate, scalable, and investable growth opportunity – with a proven track record of delivering unicorns, jobs, and exportable innovation.  Unlocking this potential depends on a tech-forward regulatory model, enhanced supervisory support for scaleups, delivering on the Mansion House Compact and Accord, and progressing core issues like open finance, crypto assets, and digital ID which will in turn help cement the UK as a global leader in innovative financial services.

Janine Hirt, CEO of Innovate Finance, said: “Despite the broader market adjustment, it is encouraging to see signs of stabilisation and resilience, in the UK and across Europe. The UK FinTech sector has proven its value. It is profitable, job-creating and globally recognised – 11 of the UK’s most profitable FinTechs alone reported combined profits before tax of $3.3 billion in 2024 and employ over 26,000 people. To retain our global lead however we need to continue working with industry, government and regulators to improve access to growth capital and innovation. We at Innovate Finance are proud to play a key role in a new initiative with the City of London Corporation and the British Business Bank to help connect scale-ups with investors. This will also help connect growing firms with the new institutional capital unlocked by the Mansion House Accord.”

With Global FinTech Investment 2025 showing renewed stability, the UK FinTech sector remains a key driver of profitability, innovation, and global leadership.