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![\"Gemini-themed](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/01\/Gemini_Generated_Image_jpjq64jpjq64jpjq-1.jpeg\")
\t\tUK fintech reigned supreme in Europe. (Image generated by Google Gemini).\t<\/p>\n
The UK tightened the grip on its European fintech crown in the last year but came under growing pressure from fast-growing competitors ramping up their influence.<\/a><\/p>\n A surge in investment in the second half of 2025 helped UK fintech hold onto the second place spot for total investment.<\/p>\n The UK attracted $3.6bn (\u00a32.7bn) last year, raking in more than the next five European countries combined but only edging above India at $3.4bn, according to the latest figures from fintech industry body Innovate Finance.\u00a0<\/p>\n The final six months of 2025 included a 11 per cent jump when compared with the beginning of the year as $1.9bn was funnelled in.\u00a0<\/p>\n Top deals included wealth manager FNZ\u2019s $650m raise and payment firm Rapyd\u2019s $300m. High profile investors in the rounds included the Fidelity Management and Blackrock funds.<\/p>\n \u201cThe UK has once again proven its credentials as a world-leading financial innovation<\/a> and technology hub,\u201d said Janine Hirt, chief executive of Innovate Finance.<\/p>\n \u201cOther countries are quickly gaining pace however, and so to maintain our global lead it is imperative that we push ahead on delivering key regulatory reforms with speed, increase access to growth capital, and continue to foster an environment which is attractive for both domestic and international entrepreneurs and investors.\u201d<\/p>\n The fintech lobby group has ramped up its efforts for regulatory reform in the last few months<\/a>, taking aim at the banking watchdog for \u201champering\u201d challenger banks\u2019 success.<\/p>\n Challenger banks are facing headaches from a \u201csuite of existing and incoming rules\u201d from the Prudential Regulation Authority which \u201ccontain logic-defying elements that disproportionately burden [them],\u201d the body said.<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tRevolut and LSEG join growing list of OpenAI customers<\/a><\/p>\n Economic Secretary to the Treasury, Lucy Rigby said: \u201cUK fintech continues to show real strength and resilience, with an upsurge in investment in the second half of last year and the UK firmly established as Europe\u2019s leading fintech hub. <\/p>\n \u201cThat momentum gives us confidence going into 2026 and I want to double down on it \u2014 backing UK innovators and wealth creators, and ensuring investment flows to the fintechs that will drive this country\u2019s future prosperity.\u201d<\/p>\n Binance\u2019s whopping $2bn tops fundraise<\/p>\n France topped the rest of Europe at $1.1bn from 127 deals while Germany scored second with $1bn from 149 deals.\u00a0<\/p>\n The US continued to triumph among the pack last year after racking up $25.1bn, making up nearly half of the global investment which rose 21 per cent to $53bn.<\/p>\n In the first half of 2025, the UAE overtook the UK after a whopping $2bn capital raise by the world\u2019s largest cryptocurrency exchange Binance.\u00a0<\/p>\n<\/p>\n But muted second half activity left the UAE totalling $2.5bn before switching back positions with UK and being ousted from a top three spot by India.\u00a0<\/p>\n Meanwhile, London\u2019s fintech giants continued their march higher with Revolut notching the $75bn mark<\/a> after a secondary share sale, which included cash injection from chipmaker Nvidia.\u00a0<\/p>\n Digital lender Starling was also understood to be eying a valuation of \u00a34bn in its first share sale since the group\u2019s valuation was cut by fund manager Jupiter after offloading its stake in 2023.<\/p>\n \t\t\t\t\tRead more<\/p>\n