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      • UK fintech investment fell by more than a fifth in 2025, but still attracted more funding than those in France, Germany, Belgium, the Nordics, Ireland, China, and Brazil combined.
      • Total fintech investment in EMEA increased marginally in 2025 to $29.2 billion, up from $26.47 billion in 2024.
      • The largest fintech deal in Europe in 2025 was the $3 billion fundraising round in November by UK headquartered neobank, Revolut. The largest deal in Europe outside the UK was the $150 million financing round by Zurich-headquartered small business lender Teylor.

      Total UK fintech investment dropped to $10.96 billion in 2025, down 21% from $13.35 billion in 2024, according to KPMG’s Pulse of Fintech, a bi-annual report on fintech investment trends.

      Geopolitical tensions, investor scrutiny and the higher interest rate environment all contributed to more subdued levels of UK fintech investment, compared to the record highs in 2021. UK fintech investment in 2025 was at its lowest level since the Covid pandemic in 2020 ($7.6 billion).

      Hannah Dobson, Partner and UK Head of Fintech at KPMG UK, said: “While 2025 presented ongoing challenges, the UK continues to stand out as Europe’s fintech hub, attracting over a third of total EMEA funding. Encouragingly, we are beginning to see momentum return as regulatory clarity improves and market conditions stabilise."

      “To maintain its position as Europe’s leading fintech centre, the UK must remain an investor friendly location, a place where innovation and entrepreneurship can thrive and be supported”. 

      After three years of declining investment, total global fintech funding rebounded in 2025 to hit $116 billion, up from $95.5 billion in 2024. The rebound was underpinned by strong growth in venture capital and M&A activity, even as private equity investment softened. Global M&A deal value rose to $55.4 billion, driven primarily by the United States ($27.5 billion) and EMEA ($11 billion), while VC investment climbed to $56.7 billion, reflecting renewed appetite for scaled growth platforms. 

      Karim Haji, Global and UK Head of Financial Services at KPMG, added: “Looking ahead to 2026, the fintech sector is entering a more balanced phase, one defined by selective growth, clearer paths to profitability, and improving liquidity."

      “While macroeconomic and geopolitical risks remain, the combination of stronger exit markets, greater regulatory clarity, and accelerating innovation provides a constructive foundation for sustained investment and long-term value creation.”

      2025 key global highlights:

      • Global fintech investment rebounded in 2025, rising to $116 billion across 4,719 deals, up from $95.5 billion across 5,533 deals in 2024.
      • Regionally, activity was strongest in the Americas, which attracted $66.5 billion, up from $55.4 billion in 2024.  EMEA followed with $29.2 billion, compared to $26.5 billion a year earlier.  Asia-Pacific activity slowed, declining to $9.3 billion from $11.7 billion in 2024.
      • Global deal volume fell to its lowest annual level since 2017, reflecting continued investor selectivity despite higher capital deployment.
      • Global fintech M&A activity strengthened, with deal value increasing from $44.6 billion across 829 deals in 2024 to $55.4 billion across 840 deals in 2025, led by strong US activity.
      • Global venture capital investment increased to $56.7 billion across 3,765 deals, up from $45.4 billion across 4,567 deals in 2024.
      • The US drove the largest VC gains, with investment rising year over year from $19.7 billion to $27.2 billion.
      • Corporate venture capital (CVC) was a standout, climbing from $20.9 billion across 1,408 deals in 2024 to $29.7 billion across 1,055 deals in 2025.
      • At the sector level, digital assets significantly outperformed 2024 levels: digital assets attracted $19.1 billion in 2025 - the third-highest year on record, up from $11.2 billion in 2024. Investment in companies focused on B2B products and services saw renewed momentum, reaching $13.5 billion, its strongest year since 2019.

      UK fintech investment is at its lowest level since the 2020 Covid pandemic (see graph below)

      hannah-dobson
      Hannah Dobson

      UK Fintech Lead and Partner, Indirect Tax

      KPMG in the UK

      Haji Karim
      Karim Haji

      Global and UK Head of Financial Services

      KPMG in the UK

      -ENDS-

      Notes to editors:

      For further information please contact:

      KPMG Media Relations

      Gerard Swinley

      M: +44 7510 375540

      E: Gerard.swinley@kpmg.co.uk

      About KPMG in the UK:

      KPMG is trusted to make the difference for our clients, people and the communities we work in. With our people’s deep sector expertise and cutting-edge technology, we help organisations overcome their biggest challenges and unlock new opportunities to transform and grow.

      On 1 October 2024, KPMG UK and KPMG Switzerland merged to form KPMG UK/Swiss Group, scaling our strengths and amplifying the difference we make.

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