UK regains second spot in global fintech investment ranking

Investment in financial technology (fintech) reached $53bn globally in 2025 after a 21% increase in investment compared to the previous 12 months, according to Innovate Finance’s annual report.

The second half of 2025 also saw the UK regain second spot in the global ranking after it was leapfrogged by the United Arab Emirates (UAE) in the first half of the year on the back of huge cryptocurrency investment by Abu Dhabi’s MGX.

On publishing its report, fintech industry trade body Innovate Finance said 2025 saw fintech funding return to growth after years of decline. A total of 5,918 deals accounted for the $53bn invested in fintech globally.

The same numbers reported this time last year revealed global fintech investments fell 20%, with the UK seeing a 37% drop, between 2023 and 2024, when global investment in fintech fell to $43.5bn and UK investment fell to $3.6bn.

This year’s figures reveal investment in the UK reversed its decline, growing 0.4% and holding firm at about $3.6bn, but it remains 37% lower than the total invested in 2003. There was, however, an 11% upsurge in the UK during the second half of 2025, where it regained second spot, which was previously occupied by the UAE in the first six months of the year.

“Our latest investment figures show the resilience, strength and global competitiveness of our phenomenal UK fintech ecosystem,” said Janine Hirt, CEO of Innovate Finance. “Attracting a strong $3.6bn in investment in 2025 – and again claiming second place globally behind only the US – the UK has once again proven its credentials as a world-leading financial innovation and technology hub.”

But she stressed that other countries are quickly gaining pace, adding: “Other countries are quickly gaining pace, however, and so to maintain our global lead, it is imperative that we push ahead on delivering key regulatory reforms with speed, increase access to growth capital, and continue to foster an environment which is attractive for both domestic and international entrepreneurs and investors.”

The US dominated the market, investing $25bn in fintechs. Close behind the UK in third place was India, which received $3.4bn; the UAE at $2.5bn; and Singapore achieving 2$bn, rounding out the top five. Forming the mid-tier cluster are Brazil, Canada and Mexico, which all raised between $1.3bn and $1.6bn. This growth is linked to the growing adoption of digital banking, payments and investment platforms.

When it comes to the top 10, only the US, UK, India and Germany have consistently appeared in the ranking over the past decade.

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, telling 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 more than 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, around a third higher than the growth in 2023, when a 13% increase was reported.