The UK has dropped to third in global fintech rankings for the first time, overtaken by the UAE’s strong performance.
In the first half of 2025, global fintech investment reached $24 billion across 2,597 deals, representing a 6% increase from the latter half of 2024, according to Innovate Finance data. The US remains the leader, raising $11.5 billion from 1,082 deals, while countries like India ($1.4 billion) and Singapore ($798 million) are gaining ground.
The UAE has emerged as the second-largest fintech market globally, attracting $2.2 billion in investment, primarily driven by a $2 billion deal with Binance in H1 2025. The UK now holds the position of the third-largest fintech market, with $1.5 billion raised in 240 deals this year, ranking first in Europe ahead of France and Germany combined. However, competition for investment is intensifying, as India and Singapore are closely following the UK.
Despite facing funding challenges, UK fintech companies are performing well on key business metrics. A recent report reveals that 11 of the UK’s most profitable fintechs—Allica Bank, Atom, Funding Circle, Iwoca, Monzo, OakNorth, Revolut, Starling, Tandem, Wise, and Zopa—generated a total of $3.3 billion in pre-tax profits in 2024, contributing $848 million in taxes and employing over 26,000 people.
In contrast, fintechs across the rest of Europe, excluding the UK, raised $2.9 billion in H1 2025, reflecting a 28% increase from H2 2024. France and Germany achieved strong results, raising $693 million and $668 million, respectively.
Janine Hirt, CEO of Innovate Finance, noted, “Despite the broader market adjustment, it is encouraging to see signs of stabilization and resilience in the UK and across Europe. To maintain our global lead, we must continue to collaborate with industry, government, and regulators to enhance access to growth capital and foster innovation.”