FCA Scraps Contactless Payment Cap — Banks Free to Set Own Limits
The Financial Conduct Authority has removed the regulatory cap on contactless payments, allowing banks and payment providers to set their own transaction limits from March 2026.
Regulation
Latest regulation news and analysis
Revolut Applies for US Banking Charter in Global Push
By Priya Sharma
UK fintech giant Revolut has filed applications with the OCC and FDIC for a US national bank charter, committing $500 million to the American market as it targets 100 million customers globally.
UK Finance Sector Creates 28,000 AI-Specialist Roles as Hiring Boom Accelerates
By Marcus Webb
The UK financial services industry created over 28,000 AI-specialist positions in the past 12 months, making it the fastest-growing segment of City hiring. Demand for machine learning engineers, AI ethics officers, and prompt engineers is outstripping supply.
UK Digital Banks Race to Launch AI-Powered Financial Advisers for Mass Market
By Priya Sharma
Monzo, Revolut, and Starling are all developing AI-powered financial advice tools, aiming to democratise wealth management for millions of everyday customers.
Credit Builder Apps See Record UK Sign-Ups as Young Adults Tackle Financial Exclusion
Credit building apps including Loqbox, Bits and Creditspring have reported record user growth in the UK, driven by under-30s seeking to establish credit histories without taking on traditional debt.
FCA Cracks Down on Appointed Representatives Regime in Fintech Sector
The FCA has issued 19 enforcement notices to principal firms in the fintech sector for inadequate oversight of their appointed representatives, as tighter rules introduced in 2024 begin to bite.
Pay by Bank Adoption Doubles as UK Retailers Embrace Open Banking at Checkout
Pay by Bank usage has more than doubled in the past year, with over 40 major UK retailers now offering the Open Banking payment method at online and in-store checkouts.
Card Payments Lose Ground to Digital Wallets as UK Consumers Shift Spending Habits
Digital wallet transactions have overtaken physical card payments in UK retail for the first time, with Apple Pay, Google Pay, and retailer-branded wallets now accounting for 52% of in-store contactless spend.
UK Invoice Financing Sector Hits £40 Billion as Fintechs Capture Record Market Share
The UK invoice financing market has grown to £40 billion in annual advances, with fintech providers now accounting for nearly one-fifth of all originations as digital platforms reshape trade finance.
VC Investment in UK Fintech Tops £4.8 Billion in 2025, Reclaiming European Crown
By Sophie Chen
Venture capital investment in UK fintech companies totalled £4.8 billion in 2025, according to Innovate Finance's annual report, marking a 35 percent year-on-year increase and restoring the country's lead over Germany and France.
Confirmation of Payee Expansion Reaches 99 Per Cent Coverage Across UK Payment Networks
The Confirmation of Payee system now covers 99 per cent of UK Faster Payments transactions, marking a milestone in the fight against misdirected payments and APP fraud.
FCA Launches Financial Inclusion Sandbox Targeting Underbanked Communities Across the UK
The FCA has opened a dedicated financial inclusion regulatory sandbox, inviting fintechs to test products designed for underbanked and financially excluded populations. The initiative has attracted 42 applicants including credit unions, community lenders, and savings app developers.
Buy Now, Pay Later Finally Comes Under FCA Regulation — 10.9 Million UK Users Affected
The FCA has confirmed that BNPL lenders must obtain authorisation and conduct affordability checks from 15 July 2026, ending years of debate over the fast-growing, largely unregulated sector.
Machine Learning Credit Scoring Opens Lending to 2.4 Million Previously Excluded Britons
Alternative credit scoring models powered by machine learning have enabled UK lenders to approve loans for 2.4 million consumers who were previously deemed uncreditworthy by traditional scoring methods. The shift is being hailed as a breakthrough for financial inclusion.
UK Payment Infrastructure Review Recommends Single Oversight Body for Clearing Systems
An independent review commissioned by HM Treasury has recommended consolidating oversight of the UK's payment clearing systems under a single body, replacing the current split between Pay.UK and the Bank of England.
E-Money Firms Face Tighter Safeguarding Rules Under FCA Overhaul
The FCA has finalised new safeguarding requirements for e-money and payments institutions, mandating that customer funds be held in statutory trusts and introducing daily reconciliation obligations.
FCA Tightens Rules on Digital Bank Marketing After Consumer Complaints Surge
By Priya Sharma
The Financial Conduct Authority has introduced stricter marketing rules for digital banks following a 40 per cent rise in consumer complaints about misleading savings and investment promotions.
Iwoca and Tide Lead Charge in SME Lending as High Street Banks Retreat
Fintech lenders Iwoca and Tide are filling the gap left by traditional banks in small business lending, with combined SME loan originations exceeding £2 billion in the past year.
Generative AI Chatbots Handle 60% of UK Banking Customer Queries
Generative AI-powered virtual assistants now handle the majority of customer service interactions at Britain's largest banks, dramatically reducing wait times and operational costs. NatWest reports its AI chatbot resolves 78 per cent of queries without human escalation.
Open Banking Pioneer TrueLayer Closes £90M Series F to Build Pan-European Payment Network
By Oliver Trent
TrueLayer has raised £90 million in a Series F round led by Addition and Northzone, as the open banking infrastructure provider expands its instant account-to-account payment network across 14 European markets.
UK Fintech Consolidation Accelerates as Checkout.com Acquires Modulr for £800 Million
By Oliver Trent
Payments processor Checkout.com has acquired embedded payments platform Modulr in an £800 million deal, as larger UK fintechs begin absorbing smaller competitors in a wave of domestic consolidation.
Bank of England Launches Phase Two of Digital Pound Consultation
The Bank of England and HM Treasury have opened a second public consultation on the digital pound, focusing on privacy safeguards, programmability features, and the role of fintech firms in distributing a UK central bank digital currency.
Deepfake Threats in Banking Escalate as AI-Generated Fraud Hits UK Financial Institutions
UK banks are scrambling to deploy deepfake detection tools after a spate of AI-generated voice and video fraud attempts targeting high-value corporate accounts.
UK Retains #2 Spot Globally as Fintech Investment Reaches $3.6 Billion in 2025
By Sophie Chen
Innovate Finance's annual report shows the UK attracted $3.6 billion across 534 fintech deals in 2025, reclaiming second place globally behind the United States.
Cross-Border Remittance Costs Fall to Record Low for UK-to-South Asia Corridor
By Marcus Webb
The average cost of sending £200 from the UK to India and Pakistan has fallen below 3% for the first time, driven by fintech competition and regulatory pressure on high-street banks.
London Forecasted to See 37% Surge in Fintech Hiring in 2026
By Marcus Webb
Morgan McKinley research projects a 37% year-on-year rise in London fintech vacancies, with the capital accounting for 70% of all UK fintech roles as demand for developers and risk experts soars.
FCA Cracks Down on Unregistered DeFi Platforms Targeting UK Consumers
By Raj Patel
The FCA has issued enforcement actions against 23 decentralised finance platforms for marketing unregistered financial products to UK consumers, signalling a tougher stance on DeFi regulation.
Griffin Obtains Full UK Banking Licence, Targets Developer-First BaaS Market
By Priya Sharma
Banking-as-a-Service startup Griffin has received its full UK banking licence from the PRA and FCA, becoming the first developer-focused BaaS provider to achieve authorisation.
EU Publishes PSD3 Draft With Major Implications for UK Open Banking
The European Commission's finalised PSD3 text introduces sweeping changes to payment services regulation that could force the UK to update its own framework to maintain cross-border interoperability.
Starling Bank Weighs London Versus New York Listing as Revenue Tops £700 Million
By Priya Sharma
Starling Bank has appointed advisers to explore a dual-track IPO process on both the London Stock Exchange and NYSE, reigniting debate over whether the UK can retain its most valuable fintech companies.
Peer-to-Peer Lending Makes Quiet Comeback as Institutional Investors Return
After years of retrenchment following high-profile failures, the UK peer-to-peer lending sector is experiencing renewed growth as institutional capital flows back into the market.
FCA Publishes Landmark AI Regulation Framework for UK Financial Services
The Financial Conduct Authority has released its long-awaited regulatory framework for AI in financial services, establishing mandatory standards for model governance, explainability, and bias testing. The rules will apply to all FCA-regulated firms from April 2026.
Landmark Digital Assets Act Clarifies Crypto as Personal Property
By Raj Patel
The Property (Digital Assets etc) Act 2025 has received Royal Assent, making England, Wales, and Northern Ireland among the first jurisdictions to confirm in statute that crypto and NFTs are personal property.
PRA Proposes Higher Capital Buffers for Fintech-Linked Deposit Takers
By Marcus Webb
The Prudential Regulation Authority has proposed new capital requirements for banks and building societies that accept deposits through fintech partnerships, citing concerns about the stability of digitally sourced funding.
UK Real-Time Payments Volumes Outpace Europe as Open Banking Drives Adoption
New data from the European Payments Council shows the UK processes more real-time payment transactions per capita than any EU member state, with open banking-initiated payments now accounting for 12% of all Faster Payments volume.
FCA Overhauls Payment Safeguarding Rules in Biggest Change Since Regime's Inception
New FCA safeguarding rules effective 7 May 2026 require daily reconciliation, monthly returns, and annual audits for payment firms — after finding collapsed firms had average shortfalls of 65% of customer funds.
PensionBee Reports Record Transfers as Auto-Enrolment Generation Seeks Digital Solutions
PensionBee has processed a record £2.1 billion in pension transfers during 2025, driven by millennials consolidating scattered workplace pots. The listed pensions fintech now manages over £5.8 billion in assets on behalf of 280,000 customers.
Atom Bank Pioneers Four-Day Working Week Model as Fintech Industry Takes Note
By Marcus Webb
Atom Bank's pioneering four-day working week has delivered measurable productivity gains and reduced staff turnover, prompting other fintechs to consider following suit.
London Stock Exchange Launches Tokenised Gilts Trading Platform
The London Stock Exchange Group has launched a blockchain-based platform for trading tokenised UK government bonds, attracting £3.2 billion in initial commitments from institutional investors.
Revolut Achieves £33 Billion Valuation in Secondary Share Sale Ahead of Expected IPO
By Oliver Trent
Revolut shares changed hands at a £33 billion valuation in a secondary transaction led by Coatue Management, fuelling speculation that the UK's most valuable fintech is preparing for a London Stock Exchange listing in 2026.
Algorithmic Trading Firms in London See Record Profits Amid AI Arms Race
London-based algorithmic trading firms posted record earnings in 2025 as next-generation AI models enabled faster and more sophisticated market strategies. The boom has intensified competition for AI talent in the Square Mile.
Payroll Fintech PayFit Raises £85M to Expand Embedded Financial Services for UK SMEs
French-British payroll platform PayFit has raised £85 million in a Series E round to deepen its embedded finance offering, including salary advances and pension auto-enrolment for UK small businesses.
Account-to-Account Payments Threaten Visa and Mastercard's UK Dominance
A new report from UK Finance warns that account-to-account payments could capture up to 25 per cent of point-of-sale card volume by 2030, forcing card networks to rethink their pricing strategies.
KYC and AML Technology Spending Hits Record £2.1 Billion Across UK Financial Services
UK banks and fintechs are projected to spend a record £2.1 billion on KYC and AML technology in 2025, driven by regulatory pressure and the rising complexity of financial crime.
Fintech Licensing Backlog Reaches 14 Months as FCA Faces Capacity Crunch
UK fintech firms are waiting an average of 14 months for FCA authorisation, up from nine months in 2023, prompting calls for urgent reform of the regulator's licensing processes.
Open Banking Data Reshapes Alternative Credit Scoring in the UK
A growing number of UK lenders are adopting open banking-based credit scoring models that look beyond traditional credit bureau data, potentially unlocking access for millions of underserved borrowers.
Coinbase UK Secures Full FCA Authorisation, Expands Institutional Services
Coinbase has become one of the first major international exchanges to receive full FCA authorisation under the new crypto framework, announcing plans to triple its UK workforce.
Agentic AI Arrives in UK Banking as Revolut and Monzo Launch Autonomous Finance Tools
By Priya Sharma
Revolut and Monzo are pioneering agentic AI systems that can autonomously manage bill payments, negotiate better deals, and rebalance savings on behalf of customers. The technology marks a shift from reactive chatbots to proactive financial agents.
Worldpay Charts Independent Course After FIS Separation with £2.5bn UK Investment Plan
By Oliver Trent
Worldpay has unveiled a £2.5 billion technology investment plan following its formal separation from FIS, with the payments giant pledging to modernise its UK acquiring infrastructure and expand merchant services.
Plaid and Tink Race to Dominate UK Open Finance Data Market
As the UK moves beyond payments into broader open finance, US-backed Plaid and Visa-owned Tink are competing fiercely to become the default data connectivity layer for British financial services.
London SPAC Backed by Hedosophia Targets Wealthtech Acquisition
By Oliver Trent
A London-listed special purpose acquisition company backed by Hedosophia has entered exclusive talks to merge with a prominent UK wealthtech firm in a deal that would value the combined entity at £3.5 billion.
Onfido and Jumio Battle for Dominance in UK Identity Verification Market
The UK identity verification market is intensifying as Onfido and Jumio compete for fintech contracts amid rising regulatory demands for robust KYC onboarding.
FCA Sets March 2026 Deadline for Operational Resilience Compliance
UK financial firms face a hard March 2026 deadline to meet the FCA's operational resilience requirements, with the regulator warning that firms unable to remain within impact tolerances for critical services risk enforcement action.
Zilch Secures £200m Funding Round to Expand Credit Product Range
London-based fintech Zilch has raised £200 million in a Series D round, valuing the company at £2.5 billion as it plans to move beyond BNPL into broader consumer credit.
UK Stablecoin Legislation Clears Parliament, Paving Way for Regulated Issuance
By Raj Patel
Parliament has passed the Payment Stablecoins Act, creating a bespoke regulatory regime that allows authorised firms to issue sterling-backed stablecoins for use in UK payment systems.
Robo-Advisors Surge Past £50 Billion in UK Assets Under Management
By Sophie Chen
AI-powered robo-advisory platforms have crossed a significant milestone as UK assets under management surpass £50 billion for the first time. Nutmeg, Wealthify, and Moneyfarm are leading the charge as younger investors increasingly favour algorithm-driven portfolios.
Stripe Acquires GoCardless in £2.1 Billion Cross-Border Deal
US payments giant Stripe has agreed to acquire London-based direct debit platform GoCardless for £2.1 billion, marking the largest cross-border fintech acquisition involving a UK target this year.
Biometric Authentication Adoption Doubles Among UK Digital Banks
By Priya Sharma
Facial recognition and behavioural biometrics are becoming standard security features as UK challenger banks report a twofold increase in biometric login adoption over the past year.
Revolut Launches Mortgage Product in UK as It Deepens Traditional Banking Push
Revolut has entered the UK mortgage market with a digital-first home loan offering, signalling the fintech giant's ambition to become a full-service bank.
Consumer Duty Rules Force 47 Fintech Firms to Overhaul Fee Structures
Nearly 50 UK fintech firms have been required to restructure their pricing models following FCA enforcement action under Consumer Duty rules, with the regulator warning that hidden charges remain a persistent concern.
UK Fintech Seed Funding Surges 28% in Q2 as Accelerators Back AI-First Startups
By Sophie Chen
Seed-stage investment in UK fintech startups jumped 28 percent in the second quarter of 2025, driven by accelerator programmes betting heavily on artificial intelligence applications in financial services.
Clearpay Launches AI-Powered Credit Limits Amid Tighter Regulatory Scrutiny
Clearpay has introduced dynamic AI-driven credit limits that adjust in real time based on user spending behaviour, as the BNPL sector prepares for full FCA regulation.
Zego Secures Full Insurance Licence as Gig Economy Coverage Demand Surges
Zego has been granted a full UK insurance licence by the PRA, enabling the insurtech to underwrite policies directly rather than relying on capacity partners. The move is expected to improve margins and accelerate product development for gig economy workers.
Large Language Models Transform Compliance at Major UK Banks
HSBC and Standard Chartered are deploying large language models to automate regulatory compliance workflows, cutting review times by up to 70 per cent. The shift marks a new phase in how the City applies generative AI to its most labour-intensive operations.
Variable Recurring Payments Go Live With Major UK Billers
The UK's largest energy suppliers and broadband providers have begun accepting Variable Recurring Payments, marking a pivotal moment for Open Banking's push beyond one-off transactions.
PSR Scam Prevention Mandates Force Payment Firms to Overhaul Compliance Systems
New regulatory mandates from the Payment Systems Regulator are compelling fintechs and banks to implement real-time fraud screening or face significant penalties.
Starling Bank Expands European Footprint with Dublin Office and New Licence Application
By Priya Sharma
Starling Bank is pushing ahead with its European expansion plans, opening a Dublin office and applying for an Irish banking licence to serve customers across the EU.
UK Banks Deploy AI Fraud Detection Systems as Scam Losses Hit £1.2 Billion
Major UK lenders are racing to implement AI-powered fraud detection as authorised push payment scams surge to record levels. Barclays, HSBC, and Lloyds have collectively invested over £400 million in machine learning systems designed to flag suspicious transactions in real time.
Wise Reports Record UK Transfer Volumes as Cross-Border Demand Surges
Wise has processed over £32 billion in cross-border transfers from UK accounts in the past quarter, marking a 41% year-on-year increase driven by freelancer payments and SME trade flows.
Marshmallow Reaches 1 Million Policyholders as Insurtech Expands Beyond Motor
Marshmallow has crossed the one million policyholder mark, making it one of the UK's fastest-growing insurtechs. The company is now exploring home insurance and commercial lines as it diversifies beyond its motor insurance roots.
Klarna Reports 40% Surge in UK Users as BNPL Demand Accelerates
Klarna has announced that its UK user base grew by 40% year-on-year, reaching 18 million active accounts as consumers increasingly turn to buy now, pay later for everyday purchases.
FCA Unveils Comprehensive Crypto Regulatory Framework for UK Markets
The Financial Conduct Authority has published its long-awaited regulatory framework for cryptoassets, establishing clear rules for exchanges, custodians, and token issuers operating in the UK.
FCA Expands Regulatory Sandbox with Permanent Digital Assets Track
The Financial Conduct Authority has launched a permanent digital assets track within its regulatory sandbox, allowing crypto and tokenisation firms to test products under supervised conditions without time limits.
UK Open Banking Payments Surpass 12 Million Monthly Transactions
Open Banking payment volumes in the UK have reached a new milestone, with monthly transactions exceeding 12 million for the first time as consumer adoption accelerates.
APP Fraud Losses Surge Past £300 Million as UK Banks Face Mounting Pressure
Authorised push payment fraud losses reached £341 million in the first half of 2025, prompting renewed calls for mandatory reimbursement enforcement across the banking sector.