London’s share of UK fintech funding slips to 94%

Data from Tracxn Technologies shows London’s share of UK fintech funding declined to 94% in the first half of 2026, down from 99% in the second half of 2025. Total fintech investment in the UK fell 35% over the same period to $1.5bn and was 25% lower than the first half of 2025.

Tracxn attributed the aggregate fall mainly to a 45% drop in late-stage funding, equivalent to about $830m. In contrast, early-stage activity increased: seed funding rose 93% to £145m in H1 2026.

Regional centres recorded smaller absolute funding amounts but showed growth. Edinburgh received $13.2m, Belfast $12m, Cambridge $8m and Manchester $3m in the period. London retained the majority of capital despite the slight reduction in share.

Prime Minister Andy Burnham pledged to decentralise decision-making and resources from London, saying, “We will take power out of [London] and carry it into every postcode in the land so that they can do more.”

Sarah Jones, chief executive of FinTech Wales, urged long-term support for regional clusters, calling for investment in local skills and talent pipelines, improved access to scale-up capital, increased public sector adoption of technology and clearer routes for regional firms to work with major financial institutions. She added that regional ecosystems can develop internationally competitive fintech businesses while London remains a global financial centre.

Chris Skinner, chief executive of The Finanser, noted fintech groups and activity across the UK, citing organisations in Scotland, Wales, Belfast, Bristol, Leeds and Manchester. He pointed to Atom Bank as an example of a challenger that began in Durham and recently relocated to Newcastle’s Pattern Shop.

Tracxn described the market as showing two trends: fewer and smaller late-stage rounds reducing overall totals, and stronger seed-stage investment increasing support for startups.

Policymakers and industry figures continue to discuss ways to spread investment and build regional fintech ecosystems that can scale. While London retained most funding in H1 2026, Tracxn’s data indicates a modest redistribution of capital and increased early-stage activity across the UK.