UK fintech investment reached $7.2 billion in the first half of 2025, a decrease of five percent from $7.6 billion during the same timeframe in 2024, as reported by KPMG’s latest Pulse of Fintech.
Across the first half of 2025, there were a total of 216 completed M&A, private equity, and venture capital deals within the UK fintech sector, reflecting a modest increase from 198 deals in the first half of 2024. Notably, there was a marked difference between the first and second quarters; Q1 attracted $5.2 billion through 125 deals, whereas Q2 saw only $2 billion from 91 deals.
Several high-profile transactions characterized this period, including Blackrock’s significant $3.1 billion acquisition of private markets data firm Preqin, a $500 million funding round for cross-border payments platform Rapyd Financial Network, and another $500 million raised by wealth and asset management technology provider FNZ.
The UK continues to be the premier hub for fintech investment in Europe, securing more capital than the rest of the EMEA region combined. However, this year’s figures remain below the peak levels of 2021, with factors such as geopolitical uncertainty, market volatility, and concerns over global economic growth contributing to the cautious investment climate, according to KPMG.
Hannah Dobson, a partner and the UK head of fintech at KPMG, remarked, “While the UK fintech sector has seen a slight downturn in investment in the first half of 2025 compared to last year, it’s promising to witness its resilience amid ongoing macroeconomic challenges.”
Looking ahead, several key developments are on the horizon for the UK fintech landscape, including the Financial Conduct Authority’s collaboration with Nvidia. This new sandbox initiative will permit banks to experiment with computing and AI software, primarily for testing and research before broader implementation.