Last Updated on August 25, 2026 by TMB
Fintech investment numbers in the UK reached a ten-year low, with only £1.8 billion invested in the first half of 2026. For comparison, the first half of 2025 saw £5 billion in fintech investments, as per KPMG’s latest Pulse of Fintech report. This represents a decrease of about two-thirds.
The last time investment numbers for H1 were this low was in 2016, when KPMG first started tracking them, at £735 million. Another notable low point was during the COVID-19 pandemic, when investment across many sectors declined.
The Fintech Funding Dip
Much of KPMG’s report focused not only on how the UK performed in the last quarter but also on its position in the broader European market. Despite these disappointing numbers, the UK still retains its spot as Europe’s largest hub for fintech investment, though with a caveat.
For H1 2026, the UK accounted for 22% of all EMEA investment, down from 68% at the end of 2025. It also ranks second to the US in global deal count, with 205 deals across mergers & acquisitions (M&A), private equity (PE), and venture capital (VC), down from 281 last year. Some of the notable deals this year include 9fin’s £124m fundraising round and Ebury’s £543m PE investment.
The Role of AI
AI is perhaps the hottest topic in the business world these days, and naturally, it played a role in the UK fintech industry this year. For H1 2026, AI-related UK fintech investment crossed £445m across 79 deals, comprising 25% of all deals, up from 16% last year.
As with overall fintech investment, the UK is the leader in AI investment in Europe, followed closely by France and Germany.
“[…] there are pockets of significant demand, particularly in AI, where investment is gaining prominence even as the wider market has softened,” said Hannah Dobson, Head of Fintech, Partner, KPMG UK.
The growing emphasis on AI means we will likely see these figures continue to rise, alongside public and private use of various models and applications.
Perhaps as a result, cybersecurity investments in the UK have also increased, with £90m raised across seven deals. This is a massive boost compared to £0.04 million across three deals in H1 2025, though it still accounts for only 5% of overall investment.
So, while overall fintech funding has dipped, the market is clearly evolving, and the figures for 2027 and beyond are certainly worth watching.
