Global fintech funding climbs 21% as UK takes second spot

Global investment in fintech rose 21% in 2025 to USD $53 billion across 5,918 deals, with the UK taking second place worldwide behind the US, according to new data from industry body Innovate Finance.

The figures place the US first with USD $25.1 billion in funding. The UK followed with USD $3.6 billion, narrowly ahead of India on USD $3.4 billion. The UAE ranked fourth with USD $2.5 billion, and Singapore fifth with USD $2 billion.

Innovate Finance said the return to growth followed several years of decline. It reported what it described as sustained investor interest, alongside more selective deployment of capital.

Deal volume

The data also points to a shift in how funding spread across markets. Innovate Finance said only the US, UK, India and Germany have appeared consistently in the global top 10 over the past decade. The top 10 markets still accounted for 82% of global fintech funding in 2025.

In the UK, deal count stood out. Funding in the UK spread across 534 deals in 2025. India recorded 253 deals. Innovate Finance said the higher deal count in the UK indicated a broader investment landscape.

Global momentum strengthened in the second half of the year. Innovate Finance reported that investment in H2 rose 61% compared with H1. It said that shift pushed annual funding 21% above 2024 levels and close to 2023 levels.

Largest rounds

Payments and cryptocurrency platforms accounted for a large share of the biggest funding rounds, according to the dataset.

The top five global deals were Binance on USD $2 billion in the UAE, Ramp on USD $1 billion in the US, Kraken on USD $800 million in the US, FNZ on USD $650 million in the UK, and PhonePe on USD $600 million in India.

Innovate Finance also identified a mid-tier cluster across the Americas. Brazil, Canada and Mexico each raised between USD $1.3 billion and USD $1.6 billion. The dataset linked that activity to growth in payments, digital banking and investment platforms in the region.

Europe picture

Across Europe, fintech firms raised USD $8.8 billion in 2025 across 1,391 deals, Innovate Finance reported. The UK led the region on both funding and deal count. UK companies drew USD $3.6 billion across 534 deals.

Innovate Finance said that total exceeded the next five European countries combined. France recorded USD $1.1 billion from 127 deals and returned to the global top 10. Germany followed on USD $1.0 billion from 149 deals. Switzerland raised USD $0.5 billion and the Netherlands USD $0.4 billion.

Ireland, Denmark, Spain, Lithuania and Italy completed the top 10 European markets in the dataset. Innovate Finance said those countries saw funding concentrated in digital banking, payments, lending and financial infrastructure.

The organisation also compared regional growth rates. It reported that Europe rose 7% year on year. It compared that with 13% for the US and 46% for the rest of the world.

UK trend

UK fintech investment stayed broadly flat in 2025, the figures show. Funding increased 0.4% compared with 2024. Innovate Finance said UK investment remained 37% below 2023 levels.

The second half of the year accounted for USD $1.9 billion of UK funding. Innovate Finance said that marked an 11% rise compared with H1. It described it as the first time in two years that the UK market recorded higher funding in H2 than H1.

Key UK deals cited in the data include FNZ at USD $650 million in wealth management, Rapyd at USD $300 million in payments, Dojo at USD $190 million in payments and merchant acquiring, Quantexa at USD $175 million in data analytics, and Fnality at USD $136 million in payments.

Innovate Finance also highlighted secondary transactions. It cited Revolut completing USD $3 billion of secondary deals in 2025, which it said valued the company at USD $75 billion.

Policy agenda

Innovate Finance linked fintech investment cycles to wider venture capital trends, which have experienced a downturn in recent years. It also pointed to recent UK policy initiatives that it said created foundations for the next phase of growth, including the Mansion House Accord, PISCES private share trading venues, a National Payments Vision, Smart Data and digital ID legislation, and regulatory streamlining.

Janine Hirt, CEO, 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."

The Treasury has also pointed to the second-half pick-up in funding as a signal for the year ahead.

"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," said Rigby.