Confidence within the UK financial system amongst fintech founders has plummeted, with a staggering 81 per cent reporting low confidence within the nation’s broader financial outlook, a pointy surge from 46 per cent final 12 months. This discovering comes from the seventh annual Fintech Founders Annual Survey, revealed at this time.
The survey, which gathered outcomes from the 500-member community of UK fintech founders, reveals a placing distinction: whereas pessimism concerning the UK financial system is at an all-time excessive, 92 per cent of founders specific robust confidence in their very own companies’ success.
Founders’ optimism vs. financial and political gloom
Regardless of the difficult macroeconomic surroundings, the report reveals founders stay resilient and optimistic about their very own ventures.
“This survey reveals the exceptional resilience of UK fintech founders,” stated Seb McDermott, co-chair of Fintech Founders. “Whilst confidence within the broader financial system has fallen dramatically, founders’ confidence in their very own companies has really strengthened. This isn’t misplaced optimism – it displays their means to innovate and adapt, even in difficult circumstances. These are precisely the entrepreneurs the UK must drive progress, they usually deserve an working surroundings that matches their ambition.”
Nonetheless, this optimism is dampened by persistent frustrations with the federal government and regulatory panorama. Solely 14 per cent of founders charge the Authorities’s method to fintech as “good,” with none ranking it “glorious”. In the meantime, 47 per cent view it as “poor” or “terrible”.
Founders report that whereas they welcome the Authorities’s recognition of fintech’s significance, equivalent to commitments within the Trendy Industrial Technique, the “on-the-ground affect stays elusive”. Regulatory challenges, entry to funding, and market circumstances stay the three major constraints on progress.The variety of founders contemplating relocating their companies overseas has additionally continued to creep up, from 40 per cent in 2023 to 46 per cent in 2025, with taxes cited as the most typical purpose.
Fintechs lead the AI revolution, however regulation lags
The 2025 survey highlights that UK fintechs are main the cost in adopting synthetic intelligence, however founders are involved that regulation is failing to maintain tempo.
A overwhelming majority (83 per cent) of founders now use AI of their operations, with 84 per cent viewing it primarily as a possibility for his or her enterprise. Solely 9 per cent of founders aren’t utilizing it and don’t have any plans to take action within the subsequent 12 months. The adoption is predicted to have a major affect on the underside line, with 72 per cent of founders anticipating AI to cut back their working prices over the following three years.
Regardless of this speedy integration, 42 per cent of founders fear that the Monetary Conduct Authority (FCA) is just too risk-averse in its method to AI regulation.
Willem Wellinghoff, UK chair and chief compliance officer of Ecommpay, which sponsored the survey, commented: “The pace of AI integration recognized on this new report is exceptional. It’s clear that fintech founders aren’t ready for permission – they’re already utilizing AI to remodel every thing from customer support and fraud prevention to regulatory compliance. Nonetheless, with confidence within the authorities’s method to fintech solely at simply over 50%, there’s clear urgency wanted to offer a governmental and regulatory framework that may hold tempo and likewise help progress and innovation.”
The Fintech Founders Annual Survey, performed in August 2025, represents a grassroots community of founders from pre-seed startups to unicorns, together with banking, lending, funds, and crypto.
