The average time for a fintech firm to receive full FCA authorisation has climbed to 14 months, according to new data compiled by law firm Shoosmiths, representing a 56 per cent increase from the nine-month average recorded in 2023. The figures, drawn from Freedom of Information requests and industry surveys, show that payments firms and e-money applicants face the longest waits, with some applications exceeding 18 months. The FCA processed 1,247 new authorisation applications in the year to March 2025, down from 1,389 the previous year despite a growing pipeline.

The backlog has drawn sharp criticism from the fintech industry, which argues that prolonged licensing timelines are forcing promising startups to incorporate overseas or abandon their UK market entry plans. Charlotte Sheridan, a financial regulatory partner at Shoosmiths, said the delays were "actively damaging the UK's competitiveness as a fintech hub" and called on the FCA to ring-fence dedicated assessment capacity for innovative firms. The FCA acknowledged the challenge in its annual report, attributing the delays to an increase in application complexity, enhanced due diligence requirements introduced under the new gateway reform, and a 12 per cent vacancy rate in its authorisations division.

In response to mounting pressure, the FCA announced a pilot programme to fast-track applications from firms participating in recognised fintech accelerators, including Barclays Eagle Labs, Techstars, and Founders Factory. The pilot, launching in January 2026, aims to reduce assessment times to under six months for qualifying applicants. HM Treasury backed the initiative, with economic secretary to the Treasury Tulip Siddiq describing it as "an important step towards ensuring that the UK remains the best place in the world to start and scale a fintech business."