The numbers speak for themselves. The UK fintech market is set to grow from USD 16.21 billion in 2025 to USD 26.11 billion by 2030, backed by a strong 10% CAGR. This growth is not just steady—it is accelerating, fuelled by digital adoption and a market that moved fast during the pandemic.
Despite tough global conditions, the UK has held on to the #2 spot worldwide for fintech investment. That kind of resilience signals something deeper: a mature ecosystem, supportive infrastructure, and a regulator that understands innovation.
For startups and scaleups working in fintech and AI, the opportunity is clear. The UK is not just open to new ideas—it is building the conditions for them to thrive. As Jessica Rusu, Chief Data, Information, and Intelligence Officer at the FCA, put it during her speech at the Innovate Finance Global Summit (IFGS) on 29 April 2025: “Fintechs should consider the UK as the best place in the world to scale and grow a business.”
Key highlights from Rusu’s speech included:
- The UK is increasingly tech-positive and is supporting growth through reforms and policies that encourage innovation.
- While the UK excels in financial services, it continues to introduce new reforms aimed at attracting international businesses.
- Recognising the different needs of international firms, the UK has put in place tailored support to help them thrive.
- The launch of AI Live Testing enables firms to collaborate with the FCA, ensuring their AI tools are ready for deployment.
This is a market with the infrastructure, investment, and intent to support the next wave of innovation.
The regulatory edge: Innovation backed by action
The UK has firmly positioned itself as a leader in financial innovation, offering a regulatory environment that’s both tech-positive and agile. The Financial Conduct Authority (FCA) is at the heart of this transformation, creating pathways for fintech and AI firms to scale with confidence.
One of the standout innovations is AI Live Testing, a world-first initiative where generative AI tools can be trialled directly alongside regulators. This is not just about testing technology—it’s about ensuring responsible deployment with the support of regulators who understand the need for innovation.
Jessica Rusu emphasised, “The FCA is open for business – including AI business.” This approach is making waves, with the FCA’s “proportionate, tech-positive and agile approach to regulation” seen as a game-changer for the fintech sector.
The FCA Sandbox also continues to be a key player in the UK’s innovation landscape. Companies participating in the Sandbox are 50% more likely to raise funding and, on average, secure 15% more investment than their non-Sandbox peers. Rusu highlighted that “90% of firms engaging with Innovation services became authorised”, and the success rate is reflected in the continued growth of these businesses.
It’s clear: the UK isn’t just open to new ideas—it’s setting the stage for them to thrive. With a supportive regulatory environment, fintech and AI innovators are finding the UK a prime place to scale.
Scaling smarter: Infrastructure that supports growth
The UK’s commitment to fostering fintech and AI innovation goes beyond just creating an open market—it’s about providing the infrastructure and frameworks that businesses need to scale efficiently and effectively.
PISCES: Enabling capital raising in private markets
The Private Intermittent Securities & Capital Exchange System (PISCES) is an innovative platform designed to support investment in private companies. By providing businesses with the tools to raise capital in private markets, it simplifies the process of securing funding, helping scaleups take the next big step. This platform is one of the many ways the UK is helping businesses access growth capital, even in times of economic uncertainty.
PASS: Supporting international firms
For international firms looking to tap into the UK’s market, the Pre-Application Support Service (PASS) provides early engagement opportunities for crypto, payments, and wholesale firms. PASS ensures that businesses get the guidance and support they need before they even apply to operate in the UK. This streamlined process opens doors for international companies to get established, ensuring they are compliant and ready to hit the ground running.
AI Lab + Existing rules: Enhancing, not reinventing, the wheel
In the AI space, the FCA’s AI Lab is enabling businesses to test and scale AI technologies, while existing frameworks like the Senior Managers and Certification Regime (SMCR) and Consumer Duty already provide robust oversight. Rather than creating entirely new laws for AI, the FCA is enhancing existing regulations to ensure that innovation doesn’t compromise consumer protection. This pragmatic approach ensures businesses can scale their AI capabilities with confidence, knowing that they are operating within a trusted regulatory environment.
Modern tools for smarter scaling
The FCA has also embraced modern tools to make regulatory compliance easier and more efficient. The MyFCA portal provides firms with direct access to regulatory information and services, while the AI-driven Supervision Hub uses advanced data analytics to help regulators identify and manage risk more effectively. These tools not only streamline the regulatory process but also empower businesses to manage their compliance more proactively, freeing up more time for innovation and growth.
With these frameworks and tools in place, the UK is positioning itself as the go-to destination for fintech and AI firms looking to scale smarter and faster. The infrastructure is solid, and the opportunity to thrive is clear.
Real-world testing, real-world results
The UK’s approach to regulation goes beyond just setting rules—it’s about real-world testing and feedback to ensure policies work effectively before they’re rolled out. The Advice Guidance Boundary Review Tech Sprint is a prime example of this forward-thinking approach.
Testing policy before launch
The Tech Sprint tested the policy using real-world feedback from firms and stakeholders. Instead of implementing new rules based on theory or assumptions, the FCA engaged with industry professionals to understand how regulations could be shaped to balance innovation and consumer protection. This feedback-driven process ensures that policies are not only practical but also impactful, fostering a regulatory environment where businesses can thrive while meeting consumer needs.
Building trust and transparency
By using real-world testing, the FCA is demonstrating its commitment to trust and transparency. The public and private sectors are working together to refine regulations in a way that is clear, understandable, and based on genuine user experiences. This level of transparency is crucial in creating confidence for businesses and consumers alike, ensuring that everyone has a say in shaping the regulatory landscape.
As Rusu highlighted at the Innovate Finance Global Summit 2025, “Growth is central to the FCA Strategy, and supporting innovative firms will directly drive growth in the UK.”
The FCA’s willingness to engage with real-world input in shaping regulations signals a commitment to continuous improvement and an environment where innovation is supported every step of the way.
Why global fintechs are looking to the UK
The UK is fast becoming the go-to destination for global fintechs seeking to scale. With a combination of high-quality talent, regulatory clarity, and a strong investment landscape, the UK removes key friction points that often hinder growth.
Access to high-quality talent: The UK is home to world-class universities, research hubs, and a thriving tech ecosystem, producing a steady stream of top-tier talent in both the fintech and AI sectors. For scale-ups looking to grow, this provides an invaluable resource in terms of skill, innovation, and expertise.
Regulatory clarity and support: The UK’s regulatory environment offers clarity and robust support for international firms. Initiatives like the FCA Sandbox, AI Live Testing, and the PASS platform all work to reduce the complexity of market entry, offering firms early engagement opportunities and a smoother path to scaling. The FCA’s proactive approach ensures that the UK remains ahead of the curve when it comes to responsible, forward-looking regulation.
A strong investment landscape: With the UK holding the #2 spot in global fintech investment, it’s clear that this market has the backing it needs for growth. The FCA’s support initiatives, such as the Sandbox’s proven success rate in helping firms raise funding, show that the UK not only attracts investment but is committed to nurturing it.
As Jessica Rusu explained, “The UK excels at financial services – but we are not resting on our laurels.”
For international fintechs, the UK is the launchpad to accelerate growth, innovate freely, and secure the resources needed to succeed on a global scale.
A smarter bet for a smarter future
The UK is positioning itself as the ideal environment for fintech and AI growth, with a strong growth trajectory, forward-thinking regulation, and concrete support for real innovation. It is a market that not only adapts to change but embraces it, setting the stage for the next wave of technological advancement.
The country’s innovative frameworks, like the FCA Sandbox and AI Live Testing, offer fintechs and AI innovators the tools and resources to grow responsibly and at scale. The emphasis on regulatory agility and data-powered supervision ensures that innovation is protected while enabling bold ideas to flourish.
As Jessica Rusu put it, “AI Live Testing enables generative AI model testing in partnership between firms and supervisors… to facilitate responsible deployment.”
With this kind of forward-thinking support, the UK is not only a great place to scale but also a smarter bet for a smarter future in the global fintech and AI landscape.
FAQs
The UK offers a combination of strong fintech growth, supportive regulatory environments, and a deep commitment to innovation. Initiatives like AI Live Testing and the FCA Sandbox provide a solid foundation for scaling businesses in a trusted environment.
The UK is home to top-tier universities, research hubs, and a thriving tech ecosystem, providing businesses with access to world-class talent in fintech and AI. This resource is crucial for scale-ups looking to grow and innovate with the help of skilled professionals.
AI Live Testing is a groundbreaking initiative that lets businesses test generative AI tools in real-world scenarios, working directly with regulators. It ensures that AI technologies are not only effective but deployed responsibly. By collaborating with regulators from the outset, fintech and AI firms get the support they need to innovate confidently, knowing their products meet both performance and compliance standards.
