Financial industries worldwide are currently grappling with a decline in investments within the fintech sector, yet the EMEA region breaks this prevailing trend, showing an upward trajectory. A comprehensive analysis gleaned from the newly released “Pulse of Fintech” report by KPMG highlights the discrepancies between the investment patterns in EMEA compared to the global situation. The report reveals a curious blend of declines and advancements, pointing towards pivotal tech-driven areas like digital assets and AI that are gaining momentum.
While previous reports showed a surge in the global fintech segment, the recent numbers tell a different story. KPMG’s recent data contrast the trends seen during the latter half of 2024. Back then, a broader global uptrend was visible across various sectors. The new statistics, however, portray a downturn, signifying an important shift in how capital is being allocated within technological financial markets.
Why Did EMEA’s Fintech Investment Surge?
In stark contrast to the global downturn, EMEA’s fintech investment volume rose prominently from €9.4B with 780 deals in H2 2024 to €11.6B across 759 deals in H1 2025. This growth depicts resilience, especially amid global declines where the total capital flow dwindled to €38B from €46.1B.
How Does The UK Stand Out In This Growth?
The United Kingdom remains a pivotal player within Europe’s fintech landscape. With €6.2B in investments, the UK captured a major portion of EMEA’s total fintech market. Of ten massive funding engagements in H1 2025, the UK partook in eight. Key transactions like BlackRock’s $3.1B acquisition of Preqin exemplify heightened activity.
“Fundraising in the UK is becoming strategic, with investors focusing on long-term value,” mentions Hannah Dobson at KPMG UK. The focus areas are shifting towards AI and digital assets posing significant growth potential.
How Does France Contribute To This Competitive Environment?
France took the helm in continental Europe with a substantial $1.6B transaction involving Esker and Bridgepoint. This development highlights France’s emerging influence in European financial markets. Other regions like Germany saw declines, indicating a broader shift in capital towards France and the UK.
Reports suggest that countries like the Netherlands are also keeping investment momentum, notably channeling funds into pioneering digital solutions and platforms.
“We expect continued focus on digital assets and AI with a cautious investment strategy,” states Martijn Berghuijs of KPMG Netherlands, hinting at potential developments forthcoming.
Summarizing, while the global fintech investment scene shows signs of decline, EMEA, particularly the UK and France, continues to exhibit robust activity. This trend appears anchored in discerning strategic investments, primarily around digital assets and innovative fintech solutions. Monitoring these shifts could offer vital insights into future capital allocation within these sectors.
