Context
The FCA has published an ‘Innovation Insights 2025’ report, which explores what is changing in the fintech world, where the risks are shifting, and how FCA innovation services are helping firms test and scale responsibly. It brings together what the FCA is learning from fintech market developments and how firms are using the FCA’s innovation services.
Key points to note and next actions
- In 2025 the FCA found that capital is flowing more selectively, with global fintech investment exceeding $130 billion across more than 4,500 deals, but with funding concentrated in fewer, larger and more mature firms.
- Firms are seeking regulatory clarity earlier, as the key challenge shifts from building new products to understanding how regulation applies to them
- Demand for our support grew, with applications to its Regulatory Sandbox and Innovation Pathways rising 49% in 2025.
In 2026, the FCA:
- wants firms to move more efficiently from questions to action, which will require better guidance, more structured pathways, and continued dialogue with the market; and
- will focus on clearer testing criteria, broader engagement with incumbents – particularly in wholesale markets and general insurance – and stronger support for UK competitiveness and international growth.
The Report covers:
- Innovative support and engagement.
- The fintech landscape.
- A ‘regulatory sandbox and innovation pathways’ overview.
- The 2026-2027 outlook.
- New FCA initiatives.