The UK invoice financing market has grown to £40 billion in annual advances, with fintech providers now accounting for nearly one-fifth of all originations as digital platforms reshape trade finance.
By Sophie Chen
Venture capital investment in UK fintech companies totalled £4.8 billion in 2025, according to Innovate Finance's annual report, marking a 35 percent year-on-year increase and restoring the country's lead over Germany and France.
The Confirmation of Payee system now covers 99 per cent of UK Faster Payments transactions, marking a milestone in the fight against misdirected payments and APP fraud.
Amazon and eBay have both launched Pay by Bank for UK customers via TrueLayer, allowing direct bank-account payments at checkout — a watershed moment for open banking adoption.
The FCA has opened a dedicated financial inclusion regulatory sandbox, inviting fintechs to test products designed for underbanked and financially excluded populations. The initiative has attracted 42 applicants including credit unions, community lenders, and savings app developers.
The FCA has confirmed that BNPL lenders must obtain authorisation and conduct affordability checks from 15 July 2026, ending years of debate over the fast-growing, largely unregulated sector.
An independent review commissioned by HM Treasury has recommended consolidating oversight of the UK's payment clearing systems under a single body, replacing the current split between Pay.UK and the Bank of England.
Alternative credit scoring models powered by machine learning have enabled UK lenders to approve loans for 2.4 million consumers who were previously deemed uncreditworthy by traditional scoring methods. The shift is being hailed as a breakthrough for financial inclusion.
The FCA has finalised new safeguarding requirements for e-money and payments institutions, mandating that customer funds be held in statutory trusts and introducing daily reconciliation obligations.
By Priya Sharma
The Financial Conduct Authority has introduced stricter marketing rules for digital banks following a 40 per cent rise in consumer complaints about misleading savings and investment promotions.