The City of London is growing as a major fintech hub, with startups attracting the most tech investment. Since 2019, fintech SMEs in the Square Mile have secured £4.3 billion in equity investment, making it the dominant sector in the area’s thriving tech ecosystem, according to a new report by the City of London Corporation.
The Tech SME Landscape report shows that fintech continues to expand, with 497 fintech SMEs now operating in the City—more than any other tech sector, including data and AI. Despite a dip in 2023, investment rebounded strongly in 2024, with fintech firms raising £810 million across 69 deals in the first three quarters alone—more than double the £354 million raised in 2023. While the number of deals has decreased, the average investment size has grown, signaling increased investor confidence and a shift toward larger funding rounds.
Why Fintech Thrives in London
The City of London remains a fintech powerhouse, strategically positioned near major financial institutions, investors, and accelerators. In fact, 14.5% of all fintech SMEs in London are based in the Square Mile—the highest concentration of any UK local authority.
Leading fintech firms headquartered in the City include Teya (formerly SaltPay), a payment processing company that has raised £358 million in equity since 2019, achieving unicorn status by 2021. The City also boasts a strong fintech accelerator network, such as the Fintech Innovation Lab London, which helps early-stage startups refine their business models and attract investment.
Among the City’s billion-dollar tech companies, nine out of eleven are fintech firms, collectively raising £6.7 billion in equity since 2019. Notable among them is Monzo, which recently increased its valuation to $5.9 billion (£4.6 billion) as it gears up for European expansion.
Chris Hayward, Policy Chairman of the City of London Corporation, emphasized the City’s unique strengths:
“London’s tech sector is globally recognized, ranking first in Europe and fourth worldwide for venture capital investment. This vibrant ecosystem is supported by a steady influx of skilled talent, with top academic institutions contributing to a pipeline of tech-focused graduates.”
However, he also warned against complacency, emphasizing the need for ongoing support and investment to maintain growth
The SME Gateway
To strengthen London’s position as a fintech leader, the City of London Corporation is launching the SME Gateway, an online portal designed to help startups set up in the City and access private funding. This initiative aims to attract, support, and maintain relationships with fintech startups, ensuring they have the resources they need to scale successfully.
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