The UK’s fintech sector risks losing momentum unless longstanding barriers to growth are addressed, according to a new joint report from Innovate Finance and Boston Consulting Group.
Accelerating the Unicorn Landscape in UK FinTech draws on interviews with 20 leading founders and chief executives to argue that while the UK has built a strong pipeline of financial technology companies, it is struggling to turn those domestic successes into global leaders.
The study urges government, industry and regulators to act together by embracing risk, unlocking long-term domestic capital, restoring market access and strengthening talent incentives to help UK fintechs scale globally.
While the UK’s 3,000 fintech firms make it the world’s second-largest market after the United States, investment levels have plateaued in recent years.
In the meantime, markets such as India and Singapore have recorded investment growth of over 40 per cent between 2024 and 2025.
The report identifies four key obstacles holding UK firms back: slow regulatory processes that lag behind innovation, a shortage of domestic growth capital, reduced access to European markets since Brexit, and a lack of incentives to attract and retain top talent.
To rectify this, four key priorities are proposed: closer public–private collaboration, more growth capital, better market access and stronger talent pipelines.
Janine Hirt, CEO, Innovate Finance, highlighted the success UK fintechs have had, but noted that the opportunities that lie ahead “… will only be realised if government, industry and regulators move forward together, faster. The time to act is now.”
Kunal Jhanji, managing director and partner at BCG, added that while the UK is strong at creating fintechs, the window to act is narrowing as other global centres move quickly to attract capital and talent.
“A broader mindset and cultural shift that encourages wealth creation and supports more domestic capital, with greater risk appetite through to IPO, will be key to ensuring more of that value is built and retained in the UK.”
