Global fintech investment declines 20% in 2024 amid ‘economic turbulence’

Innovate Finance has revealed that while global fintech investment declined by a fifth in 2024 amid tough market conditions, the US and UK retained the top two spots respectively.

Global fintech investment fell 20% to $43.5 billion across 6,464 deals, in a year marked by political change and economic headwinds.

However, globally fintech investment in the second half of 2024 was slightly up on the first half of the year, which Innovate Finance said pointed to “green shoots of recovery” going into 2025.

The UK attracted $3.6 billion in investment across 576 deals, down 37% from 2023.

Despite this, the UK retained its rank as second worldwide and first in Europe for fintech funding.

Innovate Finance, the industry body representing UK fintech, reported that the UK secured more capital than the next five European countries combined.

In Europe, France raised $1.1 billion from 127 deals, making its return to the global top 10, followed by Germany with $0.9 billion from 149 deals.

The US retained its position at the top of the fintech investment ranking, having raised $22 billion in 2024, while India ($2.2 billion) came in at third place and Singapore ($1.4 billion) closed out the top four.

Innovate Finance revealed that female-led fintechs saw a sharp 78% drop in investment, raising $120 million across 71 deals last year.

Janine Hirt, CEO of Innovate Finance

Janine Hirt, chief executive officer of Innovate Finance, said the latest figures tell “a compelling story of resilience and adaptability”, but added that there is “no time for complacency”.

“The UK’s ability to attract $3.6 billion in fintech investment during a year of economic turbulence reflects the strength and dynamism of our ecosystem,” she said.

“We know the upswing in investment is coming, and we need to ensure that when it does, the UK is at the front of the queue as a destination for VC funding.”

Hirt added: “To remain a global leader, we need to double down on innovation, market reforms and progressive regulation, ensuring we are prepared to capitalise on the next phase of growth and stay ahead in an ever more competitive world.”

Among the major deals to have taken place in the UK last year, the report highlighted $621 million for Monzo and $267 million for Zepz.