Fintech founders embrace AI revolution, but confidence in UK economy plummets to new low
- Economic pessimism surges from 46% to 81% in just one year.
- Founders confident in business success, despite economic headwinds.
- AI adoption reaches 83% in fintechs, slashing operating costs.
Results of this year’s Fintech Founders Annual Survey, published today, reveal a striking contrast: while 92% of founders express strong confidence in their own businesses, a staggering 81% have low confidence in the broader UK economy (up sharply from just 46% last year).
The number of founders considering relocating abroad continues to creep up – 40% in 2023, 43% in 2024, and 46% in 2025 – with taxes cited as the most common reason.
Founders welcome the Government's recognition of fintech's importance – including commitments in the Modern Industrial Strategy to make the UK the "most technologically-advanced global financial centre" – but report that on-the-ground impact remains elusive:
- Only 14% of founders rate the Government's approach to fintech as "good" (with none rating it "excellent"), while 47% view it as “poor” or “awful”.
- Regulatory challenges persist, with founders reporting continued inefficiency and delays.
- Access to funding, regulation and market conditions remain the three primary constraints on fintech growth.
Despite a challenging environment, UK fintechs are leading the AI revolution. However, founders express concern that regulation is not keeping pace with innovation:
- 83% of founders now use AI in their operations, with just 9% neither using it nor planning to within the next year.
- 72% expect AI to reduce operating costs over the next three years.
- 84% view AI as primarily an opportunity for their business, with only 1% seeing it as a threat.
- 42% worry the FCA is too risk-averse in its AI regulation.
Seb McDermott, Co-Chair of Fintech Founders, said: "This survey reveals the remarkable resilience of UK fintech founders. Even as confidence in the broader economy has fallen dramatically, founders' confidence in their own businesses has actually strengthened. This isn't misplaced optimism – it reflects their ability to innovate and adapt, even in challenging conditions. These are exactly the entrepreneurs the UK needs to drive growth, and they deserve an operating environment that matches their ambition."
Willem Wellinghoff, UK Chair and Chief Compliance Officer of Ecommpay, said: "The speed of AI integration identified in this new report is remarkable. It’s clear that fintech founders aren't waiting for permission – they're already using AI to transform everything from customer service and fraud prevention to regulatory compliance. However, with confidence in the government’s approach to fintech only at just over 50%, there is clear urgency needed to provide a governmental and regulatory framework that can keep pace and also support growth and innovation.”
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