- New analysis reveals global FinTech investment fell 20% to $43.5 billion in 2024
- Innovate Finance’s annual report highlights the UK’s role as a global FinTech leader and reveals signs the market is stabilising
London, 9th January 2025 – Innovate Finance, the industry body representing UK FinTech, has today released its 2024 global FinTech investment report, revealing the UK has retained second place globally amidst tough market conditions.
In a year defined by economic headwinds and political change, global FinTech investment fell 20% to $43.5 billion across 6,464 deals. Despite a significant global slowdown, the UK remains a leading FinTech hub, attracting $3.6 billion in investment – ranking second worldwide and first in Europe for FinTech funding.
Rising interest rates, geopolitical instability, and a recalibration in venture-capital fund-raising led to tighter funding environments in key markets. Despite this, the UK secured more capital than the next five European countries combined, affirming its position as one of the leading hubs for innovation and growth in financial services.
Consistent global investment patterns
While the US retained its position as the top market – raising $22 billion – the UK ($3.6bn), India ($2.2bn) and Singapore ($1.4bn) maintained the next 3 positions globally.
In Europe, the UK dominated with $3.6 billion across 576 deals. France raised $1.1 billion from 127 deals – returning into the global top 10 – followed by Germany with $0.9 billion from 149 deals. Smaller markets like Switzerland ($0.5 billion) and Netherlands ($0.4 billion) also contributed, reflecting the breadth of innovation across the continent.
UK: Strong performance amidst global challenges
The UK’s $3.6 billion in investment marked a 37% decline from 2023, but demonstrated the sector’s resilience in the face of economic uncertainty. Major deals, including $621 million for Monzo and $267 million for Zepz, highlighted the sector’s ability to attract significant funding despite the downturn. Female-led FinTechs saw a sharp 78% drop in investment, raising just $120 million across 71 deals, underscoring the need for more inclusive funding practices.
Opportunities in the next investment cycle
FinTech investment typically moves in parallel with the broader VC investment markets, which itself has been experiencing a cyclical downturn over the last few years. However, 2024 saw an increase in broader VC investment versus 2023, and globally FinTech investment in H2 2024 was slightly up on H1 2024. These may be the first green shoots of recovery as we enter 2025. As the global FinTech sector prepares for its next growth phase, the UK has an opportunity to strengthen its position as a destination for capital and talent, while addressing areas like inclusivity and regulatory competitiveness.
Innovate Finance is advocating for bold action to ensure the UK’s readiness for the next investment upswing.
The UK Government has made good progress since July 2024: on Mansion House reforms of investment markets, a National Payments Vision, legislating for Smart Data and digital ID, and directing regulators to streamline regulation and support growth and competitiveness.
With the US seeing resurgent market confidence and a pro-innovator stance by the new administration, the UK now needs greater ambition and greater pace of reform.
The Government's forthcoming Financial Services Growth and Competitiveness strategy provides an opportunity to go further and faster as the leading centre for financial technology and innovation, including ambitious aims and rapid action on:
- Building the UK as a leading centre for blockchain and digital assets
- Delivering the next phase of Open Banking and clear plans for Open Finance
- Implementing a joined up and tech-enabled anti-fraud strategy
- Developing regulatory culture and capability to support innovation
Tulip Siddiq, Economic Secretary to the Treasury, said: “The UK maintained its position as the FinTech capital of Europe in 2024, with around 3,000 firms supporting tens of thousands of skilled jobs across the country. But we cannot rest on our laurels. New growth-focused remits for the regulators will support innovation in the sector, and we will set out further action to maintain the UK’s position as a world-leader in FinTech when we publish the first-ever Financial Services Growth and Competitiveness Strategy in the Spring.”
Janine Hirt, CEO of Innovate Finance, said: "The latest figures tell a compelling story of resilience and adaptability. The UK’s ability to attract $3.6 billion in FinTech investment during a year of economic turbulence reflects the strength and dynamism of our ecosystem. However, this is no time for complacency. We know the upswing in investment is coming, and we need to ensure that when it does, the UK is at the front of the queue as a destination for VC funding. To remain a global leader, we need to double down on innovation, market reforms and progressive regulation, ensuring we are prepared to capitalise on the next phase of growth and stay ahead in an ever more competitive world."
- ENDS -
Notes to Editors:
The FinTech Investment Landscape 2024 report was compiled using data from PitchBook as of 2nd January 2025. Figures include all stages of venture capital and private equity funding. The report is available here.
In partnership with the City of London Corporation, Innovate Finance will be hosting a panel discussion on ‘Capital Investment in UK FinTech in 2024: Insights and Trends’ on Thursday the 23rd of January at 4pm. You can register your interest here.
Media contact:
Seven Hills – innovatefinance@wearesevenhills.com
About Innovate Finance:
Innovate Finance is the independent industry body that represents and advances the global FinTech community in the UK. Its mission is to accelerate the UK’s leading role in the financial services sector by directly supporting the next generation of technology-led innovators.
Innovate Finance’s membership ranges from seed stage startups and global financial institutions to investors, professional services firms, and global FinTech hubs. All benefit from Innovate Finance’s unique position as the single point of access to promote enabling policy and regulation, talent and skills, business opportunity and growth, and investment capital.
By bringing together and connecting the most forward-thinking participants in financial services, Innovate Finance is helping create a global financial services sector that is more transparent, more sustainable and more inclusive.
More information at www.innovatefinance.com
