• Global FinTech funding rebounds, rising 21% in 2025 versus 2024 to $53 billion across 5,918 deals, reflecting increased investor confidence 

• The US remains the leading market with $25.1 billion, while the UK reclaims second place with $3.6 billion, closely followed by India with $3.4 billion.

• The recovery points to renewed momentum in global FinTech.

Innovate Finance, the industry body representing UK FinTech, has released its 2025 global FinTech investment report, revealing a strong rebound in funding worldwide. Global FinTech investment reached $53 billion in 2025, up 21% from 2024. The UK retained its second place ranking globally and first in Europe, attracting $3.6 billion, more than the next five European countries combined.

In 2025 global FinTech funding returned to growth, reflecting a stabilising environment after several years of decline. FinTech companies worldwide raised $53 billion across 5,918 deals, demonstrating sustained investor interest amid selective capital deployment.

The United States remained the dominant market, attracting $25.1 billion, followed by the UK ($3.6 billion), India ($3.4 billion), the UAE ($2.5 billion), and Singapore ($2 billion), rounding out the global top five. Brazil, Canada, and Mexico formed a strong mid-tier cluster, each raising between $1.3 and $1.6 billion, highlighting growing adoption of payments, digital banking, and investment platforms across the Americas.

Over the past decade, only the US, UK, India, and Germany have consistently appeared in the global Top 10. While investment concentration has eased, the top ten markets still account for 82% of global FinTech funding in 2025, showing capital is spreading slowly, leading hubs remain dominant, but emerging markets are gaining ground.

Major investment activity worldwide was driven by payments and cryptocurrency platforms. The top five global deals were Binance ($2 billion, UAE), Ramp ($1 billion, US), Kraken ($800 million, US), FNZ ($650 million, UK), and PhonePe ($600 million, India). Investment momentum accelerated in H2, rising 61% compared to H1, pushing total funding 21% above 2024 and near 2023 levels, signalling renewed confidence and early stages of recovery.

European FinTech Investment 

Europe raised $8.8 billion across 1,391 deals in 2025, with the UK leading at $3.6 billion with 534 deals – more than the next five European countries combined. France returned to the global top 10 with $1.1 billion from 127 deals, followed by Germany ($1.0 billion from 149 deals), Switzerland ($0.5 billion) and the Netherlands ($0.4 billion).

Ireland, Denmark, Spain, Lithuania, and Italy completed the top ten European investment markets, with funding focused on digital banking, payments, lending, and financial infrastructure. The top 10 European countries accounted for roughly 84% of total European investment. Year-on-year Europe was up 7%, suggesting Europe’s recovery may lag the US (13%) and the rest of the world (46%).

UK FinTech: Steady Performance Amid Global Challenges

In 2025, UK FinTech investment remained largely flat compared to 2024, rising just 0.4%, and remained 37% below 2023 levels, while many global markets recovered. However, the second half of the year saw a notable $1.9 billion raised – an 11% increase on H1 – the first 1st half/2nd half growth in two years, a positive signal for the UK ecosystem.

The UK retained its second place in the global ranking in a close contest with India, attracting $3.6 billion in investment compared to India’s $3.4 billion. Notably, UK funding was spread across 534 deals – more than double India’s 253 – highlighting a broader and more diversified investment landscape in the UK.

Key UK deals included FNZ ($650m, Wealth Management), Rapyd ($300m, Payments), Dojo ($190m, Payments & Merchant Acquiring), Quantexa ($175m, Data Analytics), and Fnality ($136m, Payments). These top deals highlight a resurgence in Payments and B2B infrastructure platforms, which dominated capital raises. Overall, the data points to early signs of an upturn in the UK FinTech sector.

Additionally, secondary market activity remained strong in 2025, highlighted by Revolut’s $3 billion of secondary deals, valuing the company at $75 billion.

Opportunities in the Next Investment Cycle

FinTech investment typically mirrors broader VC trends, which have experienced a cyclical downturn in recent years.

Innovate Finance emphasises the UK’s opportunity to strengthen its position as a destination for capital and talent while improving inclusivity and regulatory competitiveness. Recent government reforms – the Mansion House Accord, PISCES private share trading venues, a National Payments Vision, Smart Data and digital ID legislation, and regulatory streamlining – have laid strong foundations.

Janine Hirt, CEO of Innovate Finance, said: “Our latest investment figures show the resilience, strength, and global competitiveness of our phenomenal UK FinTech ecosystem.  Attracting a strong $3.6 billion in investment in 2025 – and again claiming second place globally behind only the United States – the UK has once again proven its credentials as a world-leading financial innovation and technology hub. 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. Our thriving UK FinTech sector is driving growth and productivity across the country, supporting consumers with the cost of living, facilitating greater financial inclusion, and creating thousands of jobs each year. We at Innovate Finance look forward to continuing to work with industry, regulators, and government to cement the UK as the best place in the world to start, build and scale a FinTech business.”

Economic Secretary to the Treasury Lucy Rigby said: “UK fintech continues to show real strength and resilience, with an upsurge in investment in the second half of last year and the UK firmly established as Europe’s leading fintech hub. That momentum gives us confidence going into 2026 and I want to double down on it — backing UK innovators and wealth creators, and ensuring investment flows to the fintechs that will drive this country’s future prosperity.”

Source: Innovate Finance