UK fintech investment falls to decade low in first half of 2026

Investment in United Kingdom financial technology companies fell to its lowest level in a decade during the first half of 2026, according to a report from accounting firm KPMG, even as global funding for the sector surged. The data reveals a sharp contraction in the UK market, with total investment dropping to approximately £1.8 billion, a decline of nearly two-thirds from the £5 billion recorded in the same period last year.

The report, which draws on PitchBook data, indicates that the number of deals also fell to its lowest point in ten years, with 205 mergers, acquisitions, private equity, and venture capital transactions completed. This represents a significant drop from the 281 deals recorded in the first half of 2025. The downturn marks a challenging start to the year, with investment levels comparable to those seen during the initial wave of the COVID-19 pandemic, according to Hannah Dobson, head of fintech at KPMG UK.

Despite the overall decline, certain areas within the sector showed resilience. Investment in artificial intelligence-focused fintech companies rose to £445 million across 79 deals, accounting for 25% of the total UK fintech investment. This is an increase...