What's Happening?
Europe's fintech sector is entering a new phase focused on value, regulation, and infrastructure. Investment is expected to grow by 19% in 2025, with a shift towards larger, later-stage deals. The UK remains a fintech capital, despite a recent decline in investment. Key themes include embedded finance, stablecoins, tokenisation, and the transition from open banking to open finance.
Why It's Important?
The evolution of the fintech sector in Europe reflects a broader shift towards sustainable growth and regulatory compliance. This transition impacts financial services, consumer adoption, and market dynamics. The focus on infrastructure and regulation could lead to more secure and efficient financial systems, benefiting consumers and businesses alike.
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What's Next?
The second half of the year will be defined by strategic execution, regulatory clarity, and smarter growth. Key developments to watch include bank-led stablecoin pilots, consolidation across BNPL and BaaS, and the acceleration of tokenisation infrastructure.
