UK loses second spot in global fintech to UAE

The UAE has leapfrogged the UK in the fintech market rankings, following a $2bn investment by Abu Dhabi’s MGX in cryptocurrency exchange Binance.

This is the first time the UK has lost second spot, and comes at a time when global investment in fintech grew 6% to $24bn during the first six months of 2025, according to figures from the UK’s Innovate Finance.

The fintech industry trade body said the market growth is a sign it is stabilising after previous volatility.

The US remains number one, raising $11bn in fintech investment through over 100 deals during the period, compared with the UAE’s $2.2bn and the UK’s $1.5bn.

India was not far behind the UK, making up ground with $1.4bn invested, while Singapore also saw growth in investment, which reached $798m. In Europe, excluding the UK, $2.9bn was invested in fintechs during the six months, a 28% increase compared with H2 2024. France and Germany saw strong performances, with $693m and $668m raised, respectively.

“Despite the broader market adjustment, it is encouraging to see signs of stabilisation and resilience in the UK and across Europe,” said Janine Hirt, CEO of Innovate Finance. “The UK fintech sector has proven its value. It is profitable, job-creating and globally recognised.”

For example, 11 of the UK’s most profitable fintechs alone reported combined profits before tax of $3.3bn last year, employ over 26,000 people and paid taxes worth $848m to the UK exchequer last year. These are: Allica Bank, Atom, Funding Circle, Iwoca, Monzo, OakNorth, Revolut, Starling, Tandem, Wise and Zopa.

But Hirt warned that the UK must continue 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 scaleups with investors. This will also help connect growing firms with the new institutional capital unlocked by the Mansion House Accord.”

Innovate Finance said: “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.”

Speaking at the 11th annual Innovate Finance Global Summit in London in May, UK chancellor Rachel Reeves promised continued government backing to the fintech sector.

She told the audience: “As chancellor, I’ve always said it’s my job to back the builders, the wealth creators and the job creators. So, my job is to back all of you in this room. After all, it’s thanks to your work that the UK is a world leader in fintech.”

According to recent research by Boston Consulting Group, the global fintech sector saw its revenues increase three times that of the finance sector as a whole in 2024, as it entered an “era of maturity”.

Despite reduced investment in fintech firms, the businesses are maturing and driving up revenues. Global fintech revenues grew by 21% last year, about a third higher than the growth in 2023, when a 13% increase was reported.