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Total UK fintech investment hit $7.2bn (£5.31bn) in the first half of 2025, down 5% from the $7.6bn (£5.61bn) that was seen in the first half of last year, according to data from KPMG.
Geopolitical uncertainty, market volatility and global concern around macroeconomic growth rates have all contributed to more subdued levels of UK fintech investment, compared with the record highs experienced in 2021.
The first half of the year’s investment total was strengthened by the size of many of the deals, including the $3.1bn (£2.29bn) buyout of private markets data group Preqin by Blackrock, a $500m (£369m) VC round by cross border payments platform Rapyd Financial Network, and a $500m (£369m) raise by the wealth and asset management technology platform FNZ.
The UK remains the centre of European fintech investment, with British fintechs attracting more funding than their counterparts in the rest of EMEA combined.
The Europe, Middle East and Africa (EMEA) region was the only major region to see fintech investment grow, from $11.1bn (£8.2bn) across 780 deals in the second half of 2024 to $13.7bn (£10.11bn) across 759 deals the first half of this year.
The largest EMEA deals outside of the UK included the buyout of cloud platform Esker for $1.6bn (£1.2bn) by the investment group Bridgepoint.
Hannah Dobson, partner and UK head of fintech at KPMG UK, said: “Although UK fintech investment experienced a slight decline in the first half of the year compared to 2024, it is encouraging to observe the continued resilience of the UK fintech sector despite the challenging macroeconomic environment.
“Key areas of investment to watch over the coming months are the continuing development of fintech AI and the growth of the digital assets sector.”
Karim Haji, global and UK head of financial services at KPMG, added: “Looking ahead to H2’25 globally, digital assets and currencies are well positioned to see investment grow even more. Whether Circle’s highly successful IPO will drive other crypto firms to exit will also be a trend to watch out for in the space.”
