Fintech investment throughout the º£½ÇÊÓƵ experienced another decline during the first half of the year, despite Chancellor Rachel Reeves' ambitious plans for the sector.
Overall º£½ÇÊÓƵ fintech investment dropped to $7.2bn (£5.36bn) – representing a five per cent decrease from the corresponding period in 2024, as reported by .
The downturn, highlighted in KPMG's bi-annual Pulse of Fintech report, occurred during a time marked by geopolitical uncertainty and market volatility.
Hannah Dobson, head of fintech at KPMG º£½ÇÊÓƵ, said the industry had shown "continued resilience" despite a "challenging macroeconomic environment."
The Americas maintained its leading position, outperforming competing regions with $27bn invested during the first half.
However, this represented a substantial decline from $35.7bn in the second half of 2024.
Europe, the Middle East and Africa stood as the sole region to counter the trend, with investment rising to $13.7bn from $11.1bn in the preceding half.
Globally, fintech investment endured its weakest half since early 2020, totalling merely $44.7bn across 2,216 deals.
Reeves' plea for fintech listings
These latest º£½ÇÊÓƵ fintech statistics follow investment plummeting by more than a quarter in 2024.
Chancellor Rachel Reeves has remained optimistic about the sector, informing industry leaders earlier this year that she would establish the º£½ÇÊÓƵ as the premier destination to "start up, scale up and to list."
The Treasury unveiled a series of regulatory reforms within the Financial Services Growth and Competitiveness Strategy, aimed at stimulating listings. The government outlined proposals to collaborate with the Office for Investment and Industry in creating a 'Listings Taskforce' aimed at enticing "the best and brightest business from around the world" to list in London.
The struggle for fintech flotations emerges as companies express enthusiasm for New York listings, citing access to more substantial capital reserves.
Payment platform Wise delivered a crushing setback to the London Stock Exchange and Reeves' fintech ambitions earlier this year by revealing plans to abandon its primary º£½ÇÊÓƵ listing in pursuit of the enhanced liquidity available on Wall Street.
This came after Revolut chief executive Nik Storonsky dismissed a London flotation as "not rational," declaring the º£½ÇÊÓƵ "can't compete" with the liquidity provided by the US.
