Global fintech investment fell 20% in 2024, according to new Innovate Finance report
Global fintech investment fell by 20% in 2024, with fintech companies worldwide bringing in a total of $43.5 billion in investment compared to the $54.2 billion total achieved over 2023.
Innovate Finance unveils latest global fintech investment report
This is according to a new report by UK-based industry body Innovate Finance, which also revealed that the total number of fintech deals globally dropped to 6,464 in 2024 compared to 7,683 in 2023, a decrease of 16%.
This is the third consecutive year in which global fintech investment has seen a decline, marking a significant fall from the record funding seen in 2021, when global fintech investment hit $136.5 billion.
The US remained the largest market by some distance, attracting $22 billion in funding, followed by the UK, India, and Singapore, which raised $3.6 billion, $2.2 billion, and $1.4 billion, respectively.
Innovate Finance attributed this “significant global slowdown” to “rising interest rates, geopolitical instability, and a recalibration in venture capital fundraising”.
The UK raised more capital than the next five European countries combined, with major rounds including Monzo and Zepz. France followed as the next largest European market, raising $1.1 billion from 127 deals.
However, the UK’s $3.6 billion in investment, spread across 576 deals, represented a 37% decline from 2023. Even more concerning, female-led fintechs experienced a steep 78% drop in investment, securing only $120 million across 71 deals. Innovate Finance has called for “more inclusive funding practices” to address this trend.
Looking ahead to 2025, the industry body offers some optimism, noting that a rise in “broader VC investment” in 2024 compared to 2023 could signal the “first green shoots of recovery”. In addition, the report highlights that global fintech investment in H2 2024 was also “slightly” higher than in H1 2024.
Going into the new year, Tulip Siddiq, economic secretary to the UK Treasury, states: “We cannot rest on our laurels”.
“New growth-focused remits for the regulators will support innovation in the sector, and we will set out further action to maintain the UK’s position as a world-leader in fintech when we publish the first-ever Financial Services Growth and Competitiveness Strategy in the spring.”
This strategy is expected to outline the next phase of open banking, introduce a tech-driven anti-fraud approach, and strengthen the UK’s position as a hub for blockchain and digital assets.
For more insights into the future of the UK fintech sector, tune in to our recent What the FinTech? podcast featuring Janine Hirt, CEO of Innovate Finance.
