UK fintech investment hits lowest since pandemic despite Revolut boost
Investment into the UK’s fintech sector tumbled to a five-year low in 2025 even after a major boost from industry juggernaut Revolut.
UK fintech received just shy of $11bn (£8bn) in investment in 2025, falling a fifth from the $13.4bn notched the year prior, according to new figures from KPMG.
A hefty chunk of the funds came from Revolut’s $3bn raise in November, where the bank secured its $75bn price tag after a secondary share sale.
Chip giant Nvidia backed the London-based fintech in the sale through its venture capital arm, NVentures, whilst investors Andreessen Horowitz, Franklin Templeton and T. Rowe Price Associates also participated.
The largest deal in Europe outside of the UK came from the $150m financing round by Zurich-headquartered small business lender Teylor.
Despite a hit to investment, the UK still attracted more funding than France, Germany, Belgium, the Nordics, Ireland, China and Brazil combined.
Though the UK did buck the global trend, where investment rebounded rising to $116bn, up from $95.5bn.
Fintech industry heads towards ‘more balanced phase’
Karim Haji, global and UK head of financial Services at KPMG, said: “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.”
Whilst total investment rose, the number of deals slid to 4,719 from 5,533 indicating investors are beginning to consolidate their efforts into established players rather than spreading capital across a high volume of early-stage startups.
Hannah Dobson, KPMG’s UK head of fintech, said the UK “must remain an investor friendly location” to hold onto its European crown.
Chancellor Rachel Reeves sought to spark a retail investor revolution in the last year with plans for high street banks to lead an advertising campaign.
The Treasury unveiled a mission to encourage savers into stocks and bonds, in hopes of boosting London’s liquidity problems as it competes with the deep pockets of Wall Street.
Dobson added: “We are beginning to see momentum return as regulatory clarity improves and market conditions stabilise”.
Reeves has attempted to make some swings to ease the regulatory environment for Britiain’s fintech innovators.
This has included the launch of a new regulatory ‘Scale-Up Unit’ as a joint venture by the banking watchdog and financial regulator.
A handful of fintech firms were named as members of the first cohort earlier this month, including the likes of neobank unicorn Zopa Bank and small business lender OakNorth.
Still, frustrations around the sluggish pace of regulatory overhauls have persisted.
City PM revealed last week that Starling’s billionaire backer had soured on aspirations for the fintech to list in London due to growing issues with City regulation.