UK Fintech Investment Hits 5-Year Low Despite Revolut Boost – February 2026

Investment in the UK’s fintech sector experienced a significant downturn in 2025, reaching a five-year low even with a substantial boost from Revolut’s $3 billion fundraising round. Total investment fell to just under $11 billion (£8 billion), a 20% decrease from the $13.4 billion recorded in the previous year, according to new figures from KPMG.

Revolut’s capital raise, which secured a $75 billion valuation after a secondary share sale in November, represented a considerable portion of the overall investment. The round attracted backing from chip giant Nvidia, through its venture capital arm NVentures, as well as established investors Andreessen Horowitz, Franklin Templeton, and T. Rowe Price Associates.

Beyond the UK, the largest single deal in Europe was the $150 million financing round secured by Teylor, a Zurich-headquartered lender focused on small businesses.

Despite the decline, the UK remained the dominant force in European fintech investment, attracting more funding than France, Germany, Belgium, the Nordics, Ireland, China, and Brazil combined. Globally, however, investment rebounded, rising to $116 billion from $95.5 billion, indicating the UK’s slowdown was somewhat isolated.

Fintech Industry Heads Towards ‘More Balanced Phase’

Karim Haji, global and UK head of financial services at KPMG, suggests the sector is entering a new phase. “Looking ahead to 2026, the fintech sector is entering a more balanced phase, one defined by selective growth, clearer paths to profitability, and improving liquidity.”

The overall increase in global investment was accompanied by a decrease in the number of deals, falling to 4,719 from 5,533. This suggests a shift in investor strategy, with a greater focus on consolidating capital into established players rather than spreading it across a larger number of early-stage startups.

Hannah Dobson, KPMG’s UK head of fintech, emphasized the importance of maintaining an investor-friendly environment to preserve the UK’s leading position. “We must remain an investor friendly location,” she stated.

Government efforts to stimulate investment have included initiatives from Chancellor Rachel Reeves to encourage retail investor participation in the market. The Treasury proposed a campaign led by high street banks to promote investment in stocks and bonds, aiming to address liquidity concerns and enhance London’s competitiveness against Wall Street.

Dobson added, “We are beginning to see momentum return as regulatory clarity improves and market conditions stabilise.” Reeves has also initiated regulatory changes, including the launch of a new ‘Scale-Up Unit’ jointly operated by the Bank of England and the Financial Conduct Authority.

Several fintech firms, including Zopa Bank and OakNorth, were named as initial members of the cohort earlier this month. However, concerns persist regarding the pace of regulatory reform.

City AM recently reported that a significant investor in Starling Bank had reconsidered supporting a London IPO due to growing concerns about the City’s regulatory landscape.