London Still Dominates UK Fintech as Regions Gain Ground

Tracxn Technologies found London accounted for 94% of UK fintech funding in the first half of 2026, down from 99% in the second half of 2025. Total UK fintech funding was $1.5bn in H1 2026, a 35% drop from $2.3bn in H2 2025 and 25% lower than the first half of 2025.

Tracxn attributed much of the decline to a 45% fall in late-stage funding, a reduction of roughly $830m. At the same time, seed-stage investment rose 93% to £145m.

Regional cities recorded measurable inflows. Edinburgh received $13.2m in H1 2026, Belfast $12m, Cambridge $8m and Manchester $3m, while London retained the majority share.

According to Sarah Jones, chief executive of FinTech Wales, the pattern presents an opportunity for a national fintech industry. She called for long-term backing for regional ecosystems to support local skills, improve access to scale-up capital and encourage public sector adoption of new technologies.

Chris Skinner, a fintech industry commentator, pointed to local networks and hubs across the UK, naming groups in Scotland, Wales, Belfast, Bristol, Leeds and Manchester. He noted Atom Bank began in Durham and has recently moved into an innovation space in Newcastle.

The report cited an early statement from Burnham: “We will take power out of [London] and carry it into every postcode in the land so that they can do more.”

Tracxn’s data show reduced late-stage capital, rising seed activity and a modest regional spread within a smaller national funding total.