New analysis from Innovate Finance, revealed that in a backdrop of stabilised global fintech investment, UK fintech companies continue to outperform on core business metrics.
The latest data from the industry body representing UK fintech, revealed that following a prolonged period of contraction, the global fintech sector is stabilising – marking the end of the “growth-at-all-costs mindset”.
The UK is now the third-largest fintech market globally with $1.5bn (£1.1bn) and 240 deals in the first half of the year and first in Europe, ahead of France and Germany combined.
Analysis in the report shows that 11 of the UK’s most profitable fintechs, including Atom, Revolut, and Wise, generated a combined $3.3bn (£2.4bn) in profits before tax in 2024.
“Despite the broader market adjustment, it is encouraging to see signs of stabilisation and resilience, in the UK and across Europe,” said Janine Hirt, chief executive of Innovate Finance (pictured).
“The UK fintech sector has proven its value […] to retain our global lead however we need to continue working with industry, government and regulators to improve access to growth capital and innovation.”
In the first half of 2025, global fintech investment reached $24bn (£17.7bn) across 2,597 deals, a 6% increase on H2 2024.
For the first time, the UAE is the second-largest fintech market globally, mainly due to the $2bn (£1.5bn) deal of Binance in March.