Fintech is moving fast – this report explores what’s changing, where the risks are shifting, and how FCA innovation services are helping firms test and scale responsibly.
The UK is one of the world's leading centres for financial innovation.
This report brings together what we are learning from fintech market developments and how firms are using our innovation services.
By sharing these insights, we aim to support earlier, clearer regulatory engagement and strengthen evidence-led policy and supervision in line with our strategy 2025 to 2030.
What we found
Capital is flowing more selectively.
In 2025, global fintech investment exceeded $130 billion across more than 4,500 deals, but funding concentrated in fewer, larger and more mature firms.
The UK ranked second only to the US, with 445 deals and $15 billion in disclosed investment.
Firms are seeking regulatory clarity earlier.
As technology advances, the key challenge has shifted from building new products to understanding how regulation applies to them. Firms that engage early and test safely are better placed to scale responsibly.
Demand for our support grew.
Applications to our Regulatory Sandbox and Innovation Pathways rose 49% in 2025.
AI, distributed ledger technology, open banking and open finance were the main technologies used by our applicants.
What we did in 2025
We expanded our innovation services to meet growing demand. To support firms at every stage of growth, in 2025 we launched:
- Supercharged Sandbox.
- Smart Data Accelerator.
- Scale-up Unit – jointly with the PRA.
- A stablecoins cohort within the Regulatory Sandbox.
We also strengthened international cooperation through the Global Financial Innovation Network (GFIN) and engaged at over 70 major fintech events.
What's next
In 2026, we want firms to move more efficiently from questions to action. That means:
- Better guidance.
- More structured pathways.
- Continued dialogue with the market.
We will focus on clearer testing criteria, broader engagement with incumbents – particularly in wholesale markets and general insurance – and stronger support for UK competitiveness and international growth.
Read the full Innovation Insights report to explore our findings in detail.
Methodology
For the fintech landscape analysis in this publication, we drew on data from PitchBook and our own analysis. For this publication, we applied a more targeted fintech definition, thus excluding some firms within PitchBook’s fintech vertical.
We also excluded debt financing from the core analysis to maintain focus on equity capital.
The data provided by PitchBook covers the period from 1 January 2025 to 31 December 2025.
As the cited data and its exclusions have not been reviewed by PitchBook analysts, these may be inconsistent with PitchBook methodology.
