Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
UK fintech investment dropped to $9.9bn (£7.8bn) in 2024, down 27% from $13.6bn (£10.8bn) the previous year, according to KPMG’s Pulse of Fintech.
The biannual report on fintech investment trends found that geopolitical uncertainty, high levels of inflation and the higher interest rate environment all contributed to more subdued levels of UK fintech investment, which brought the industry at its lowest since the $7.6bn (£6bn) registered in 2020.
Despite the drop, the report states that the UK still attracted more funding than those in France, Germany, China, India, Brazil and Canada combined.
Last year, the largest deal in the UK was the $267m (£212m) venture funding round by money transfer provider Zepz.
Total fintech investment in EMEA dropped to an eight-year low in 2024 and was down to $20.3bn (£16.1bn) from $27.6bn (£21.9bn) in 2023.
Total global fintech funding reached a seven-year low of $95bn (£75bn) in 2024, down from $113.7bn (£90.3bn) in 2023.
Hannah Dobson, partner and UK head of fintech at KPMG UK, said: “2024 was another tough year for fintech investment, which inevitably has led to some business failure and some consolidation. [..] The impact of regulation is an ongoing challenge for fintechs across EMEA as they face new EU and UK regimes in areas such as AI and BNPL.
“Despite the drop in investment, the UK remained the capital of European fintech in 2024, attracting almost half the entire funding of the EMEA region. We expect UK investment to remain relatively soft in the first half of this year, although it will likely begin to pick up as interest rates reduce further, with common consensus that this will be in Q3/Q4.”
Karim Haji, global and UK head of financial services at KPMG, added: “While global fintech funding dipped in 2024, it’s encouraging to see bright spots in some areas of investment. We are starting to see more deals coming through because of interest rate cuts in different jurisdictions and the lower cost of funding.
“However, we will have to wait and see if the changing world trading conditions impact inflation, interest rates and consequently these positive signs of market change.”
