According to the research, global capital spent in fintechs reached $15.9 billion in the first half of 2024, up from $19.5 billion in the second half of 2023.

According to Innovate Finance, this indicates that the worldwide fintech investments have fallen to a "cyclical low point, in parallel with the general global VC market, from their 2022 peak."

Furthermore, there was a decrease in the overall quantity of fundraising rounds concluded, with 1,566 deals completed in H1 2024 as opposed to 1,661 deals in H2 2023.

Furthermore, with an average deal size of $10.2 million, Innovate Finance discovers a discernible movement towards earlier stage deals (seed to Series B rounds).

In H1 2024, fintech investment in the UK ranks second.

The UK fintech ecosystem closed 183 agreements for $2 billion in fundraising in H1 2024, second only to the US, which closed 599 deals for $7.3 billion.

Even if the UK now accounts for 12.7% of the global fintech sector and has attracted more investment than all other European nations combined, this is still a 37% drop from the previous six months.

The study also reveals a drop in funding for female-led fintechs in the UK, with just 7% of the $2 billion raised—roughly $136 million—going toward funding these businesses, compared to 10% over the course of 2023.

The CEO of Innovate Finance, Janine Hirt, comments on the fintech scene and the UK's future potential, saying, "We think the decline in investment since the 2022 peak may have bottomed out." But as of now, the market has not demonstrated a turning point, and this might not occur until 2025. The UK's job is to ensure that, in the unlikely event that it does turn, we can sustain and expand our market position.

The most recent investment data indicates heightened competition on a worldwide scale for fintech investments, underscoring the ever-greater need for UK policy and regulation to act to preserve our leadership in this space as well as in financial services more broadly. Furthermore, the UK has a window of opportunity to advance since political unpredictability affects investment elsewhere in the world.