Confidence in the UK economy among fintech founders has plummeted, with a staggering 81 per cent reporting low confidence in the nation’s broader economic outlook, a sharp surge from 46 per cent last year. This finding comes from the seventh annual Fintech Founders Annual Survey, published today.
The survey, which gathered results from the 500-member network of UK fintech founders, reveals a striking contrast: while pessimism about the UK economy is at an all-time high, 92 per cent of founders express strong confidence in their own businesses’ success.
Founders’ optimism vs. economic and political gloom
Despite the challenging macroeconomic environment, the report shows founders remain resilient and optimistic about their own ventures.
“This survey reveals the remarkable resilience of UK fintech founders,” said Seb McDermott, co-chair of 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.”
However, this optimism is dampened by persistent frustrations with the government and regulatory landscape. Only 14 per cent of founders rate the Government’s approach to fintech as “good,” with none rating it “excellent”. Meanwhile, 47 per cent view it as “poor” or “awful”.
Founders report that while they welcome the Government’s recognition of fintech’s importance, such as commitments in the Modern Industrial Strategy, the “on-the-ground impact remains elusive”. Regulatory challenges, access to funding, and market conditions remain the three primary constraints on growth.The number of founders considering relocating their businesses abroad has also continued to creep up, from 40 per cent in 2023 to 46 per cent in 2025, with taxes cited as the most common reason.
Fintechs lead the AI revolution, but regulation lags
The 2025 survey highlights that UK fintechs are leading the charge in adopting artificial intelligence, but founders are concerned that regulation is failing to keep pace.
A vast majority (83 per cent) of founders now use AI in their operations, with 84 per cent viewing it primarily as an opportunity for their business. Only 9 per cent of founders are not using it and have no plans to do so in the next year. The adoption is expected to have a significant impact on the bottom line, with 72 per cent of founders expecting AI to reduce their operating costs over the next three years.
Despite this rapid integration, 42 per cent of founders worry that the Financial Conduct Authority (FCA) is too risk-averse in its approach to AI regulation.
Willem Wellinghoff, UK chair and chief compliance officer of Ecommpay, which sponsored the survey, commented: “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.”
The Fintech Founders Annual Survey, conducted in August 2025, represents a grassroots network of founders from pre-seed startups to unicorns, including banking, lending, payments, and crypto.
