UK ‘poised’ to become a world fintech leader

The UK is set to become one of the world’s next fintech leaders as its approach to digital finance and AI could support further advances in financial inclusion, according to a report from Principal Finance Group and the Centre for Economics and Business Research (CEBR).

The 2026 Global Financial Inclusion Index identified the UK as one of the five fintech ‘Next Gen Leaders’, alongside Saudi Arabia, Hong Kong, India, and Colombia.

It argued that these markets could be well positioned to become the next generation of fintech leaders if they succeed in delivering sophisticated and ambitious national strategies.

The report analysed how fintech and digital financial infrastructure were being prioritised and embedded in governmental and regulatory plans, with areas assessed including measurable targets, funding commitments, implementation plans, digital public infrastructure, and the integration of AI into financial services.

The UK ranked top of all 42 markets analysed by the index for government-led AI governance and policy frameworks, measured on the strength of the institutional and regulatory environment for AI.

Improvements in the UK’s broader financial inclusion ecosystem underpinned its potential for future fintech leadership, rising one place to ninth globally in the index after its overall financial inclusion score rose by 2.6 points to 64.3 out of 100.

It also saw improvements in its government support and financial system support scores, although its score on employer support fell.

Furthermore, while the UK’s overall index performance improved, the analysis highlighted a growing disconnect between the foundations of financial inclusion and how supported people feel in their everyday financial lives.

The UK experienced some of the sharpest declines in perceptions of financial inclusion in Europe.

“There is a clear relationship between markets with strong digital finance credentials and markets where financial inclusion is accelerating fastest,” said Principal Asset Management president and CEO, Kamal Bhatia.

“Our research suggests the markets which pull ahead in fintech leadership will be those that turn broad ambitions into clear, measurable action plans, embedding fintech into national economic strategies while balancing innovation with governance.

“Strong digital finance ecosystems can make financial products and services more accessible, affordable, and efficient, particularly as AI becomes more deeply embedded in financial services. Done well, this can translate technological innovation into greater financial inclusion, economic resilience and long-term growth.

“The UK’s position as a Next Gen Leader is particularly notable given its established position as one of the world’s foremost financial centres and a leading destination for inward foreign direct investment into financial services.

“Integrating fintech into national policy should help the UK maintain a world-class ecosystem and attract international capital.”

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