UK Fintech in 2025: Growth, AI, and Global Ambitions
The UK continues to solidify its position as a global fintech hub, but 2025 has brought a mix of innovation, regulatory change, consolidation, and strategic growth. In this article, our Senior Consultant, Charlie Whitaker, discusses the latest trends in UK fintech, including regulatory changes, AI innovation, investment activity, and international expansion.
Regulation and Innovation: Balancing growth with safety
A big trend this year has been the UK’s proactive regulatory approach. The Financial Conduct Authority (FCA) launched a live AI testing lab, allowing fintech firms to safely test autonomous AI systems for financial decision making. This initiative demonstrates the UK’s commitment to innovation while also maintaining consumer protection.
At the same time, the FCA is consulting on tokenisation of investment funds (CP25/28), which could modernise the infrastructure for digital assets. Open finance initiatives are also progressing through TechSprints focused on SME lending and mortgages, providing fintechs with the tools to innovate while remaining compliant.
Investment and Market Trends
Despite a slight dip in funding compared to previous years, the UK fintech ecosystem remains strong. According to KPMG, H1 2025 UK fintech investment reached $7.2 billion, keeping the country at the forefront of European fintech. Investors are increasingly focusing on sustainable fintech businesses, particularly those leveraging AI for risk management, underwriting, and operational efficiency.
Consolidation and Scale-Up Support
Consolidation is another key trend. In October 2025, Kriya, a UK fintech specialising in SME lending, was acquired by Allica Bank, reflecting a wider pattern of fintechs merging with traditional financial institutions to scale faster.
Meanwhile, the UK Treasury has established a new scale-up unit to support high growth financial services firms, helping fintechs work through regulation, attract investment, and expand internationally.
Major Players and Infrastructure
Established fintech leaders are also making headlines. Michael Sherwood, former Goldman Sachs executive, praised Revolut’s systems as “Goldman quality,” highlighting the increasing sophistication and reliability of UK fintech infrastructure. This type of robust technological foundation is critical as fintechs expand product offerings and scale operations.
Global Strategy: The UK as an International Fintech Partner
The UK is not only focusing on domestic growth but also positioning itself globally. Speaking at the Global Fintech Fest 2025, Prime Minister Keir Starmer described the UK as the number one partner for international fintech, particularly for companies from India seeking access to European markets. This strategy highlights the UK’s ambition to attract foreign investment and encourage international collaboration in fintech.
Partner with Pearse Professionals
At Pearse Professionals, we work closely with senior finance and fintech talent across the UK and internationally. We see firsthand how these regulatory, technological, and investment trends are shaping the demand for skilled professionals in the sector.
If you’re exploring opportunities for yourself, or are looking to hire within the Fintech space, please get in touch with Charlie Whitaker: charliewhitaker@pearseprofessionals.com