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Fintech illo <\/p>\n
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Revolut\u2019s pledge to invest \u00a33bn in Britain<\/a> last month was hailed by Rachel Reeves as a step-change for Labour\u2019s growth mission.<\/p>\n After years of excitement around a flurry of start-ups, it appeared London finally had an established fintech giant of its own, opening a new headquarters in Canary Wharf with a pledge to create 1,000 UK jobs.<\/p>\n<\/p>\n Yet, while Revolut\u2019s meteoric rise is undoubtedly impressive, the company\u2019s success has come at a time when London\u2019s grip on the global fintech sector appears to be slipping.<\/p>\n According to figures from KPMG, total UK fintech investment fell to $9.9bn (\u00a37.4bn) in 2024, down from $48bn in 2021 post-pandemic.<\/p>\n Worse still, trade body Innovate Finance predicts that Britain\u2019s fintech investment <\/a>fell behind that of the United Arab Emirates in the first half of 2025.<\/p>\n These figures potentially signal an end to what has been an undeniably strong run for the fintech industry since the financial crisis.<\/p>\n Led by Revolut, which is close to a deal that will value it at $75bn, the UK has succeeded in birthing a handful of fintechs that have risen to challenge the mainstream banks.<\/p>\n This includes the likes of Monzo and Starling, both of which have hoovered up millions of customers over the past decade, and are now worth \u00a34.5bn and \u00a32.5bn respectively.<\/p>\n But beyond this handful of success stories, doubts are growing over dozens of other upstart businesses facing questions over their future.<\/p>\n Underpinning fears are falling valuations, a slowdown in funding and the dwindling attraction of public markets.<\/p>\n Start-ups that once vowed to conquer global finance are now retreating, selling out to larger players or offloading stakes at knock-down prices.<\/p>\n As one source at a major European investment firm puts it: \u201cIf you haven\u2019t got to the point where you are about to go public, you are panicking or selling to a larger strategic.<\/p>\n \u201cAnyone in \u2018buzzy\u2019 consumer fintech late in the game is desperately trying to flog their assets.\u201d<\/p>\n There are a number of high-profile UK businesses under pressure from the fintech squeeze.<\/p>\n Curve, a digital wallet start-up that had hoped to challenge Apple Pay, is in talks over a \u00a3120m sale to Lloyds, much lower than the \u00a3600m valuation achieved in 2021 during a crowdfunding campaign.<\/p>\n Unsurprisingly, the proposed deal has sparked a shareholder revolt as up to 20,000 retail investors brace for substantial losses.<\/p>\n London-based GoCardless, a loss-making digital bank payments business founded in 2011, is also nearing a sale to a Dutch rival, Mollie for $1.5bn. This is far lower than its $2.1bn valuation achieved in 2022.<\/p>\n Story Continues <\/p>\n Nik Storonsky co-founded Revolut, one of the biggest success stories in recent Fintech history – Piaras \u00d3 M\u00eddheach\/Getty <\/p>\n