By Gianluca Berghella, CEO of Armundia Group
For decades the UK has held its position as one of the world’s most important financial centres, occupying a prominent place in the global financial imagination.
Even despite the macro instability dominating investors’ outlook, in 2025 the number of financial services companies intending to increase their UK investments has nearly doubled — a 90% increase — according to EY’s UK Attractiveness Survey. And in 2023-4, the UK attracted £4.1bn in fintech investment, becoming the world’s second-largest fintech ecosystem after the US. What is behind the UK’s enduring appeal, and why is it increasingly at risk?
The UK’s fintech strengths
The UK has one of the world’s most dynamic and advanced financial ecosystems, supported by a deep talent pool, progressive regulation, government-backed fintech initiatives and robust digital infrastructure. Furthermore, the UK is not just one market; it’s a gateway to the world. For European banks and insurers looking to expand globally, for example to the Middle East, often the best route isn’t the most direct, but via the launchpad of the UK.
Another distinct feature of the UK market is its structural diversity. While insurance and banking are tightly integrated across most of Europe, in the UK they operate as distinct sectors. This differentiation can be a barrier to entry — but also a catalyst for strategic partnerships and M&A. The UK isn’t only a market to serve, but an ecosystem to collaborate with.
All these elements make the UK an ideal environment for European institutions — private banks, asset and wealth managers, insurers — seeking both scale and innovation.
However, the UK’s future position as a global finance hub isn’t guaranteed. With a tide of disruptive technologies already reshaping the fintech sector, the UK’s traditional approaches to banking may put it under threat. Its financial infrastructure, though strong, faces the same modernisation challenges as experienced across Europe.
These challenges and opportunities are precisely why Armundia Group has expanded into the UK within the past year. We are committed to bringing our vision and innovative technological model to the market. Our goal is to overcome the limitations of traditional approaches and legacy infrastructures, by offering modular, scalable solutions that help financial institutions reimagine their services.
So, in a disruptive digital-first environment, how can the UK retain its prominence? A renewed digital vision is required.
Old infrastructure demands a new vision
To maintain its position as an international finance hub, the UK must build a more modernised tech foundation; this is what the market increasingly demands. Failing to do this — continuing with traditional business models using legacy software — will only limit the UK’s future competitiveness.
While the UK’s financial outlook is undeniably modern and forward-looking, its underlying systems and banking infrastructure remain deeply traditional. In investment management especially, many institutions still rely on legacy operating models rather than embracing full digitalisation. Bridging this gap between tradition and digital transformation is the real challenge ahead.
Answering the challenge doesn’t necessarily require institutions to embark upon major multi-year digital transformation programmes, nor hire a Chief AI Officer or build a bespoke tool in-house. In fact, pursuing large-scale transformation is often counter-productive.
Instead, the next logical step for UK institutions seeking to remain competitive is to leverage ad-hoc technological solutions. The focus should be on gradually integrating these digital processes in a targeted and effective way. There are many success stories from digitalisation activities in Italy, where systems have been reimagined across financial services and public administration.
The UK stands at a fascinating crossroads. It has an opportunity for a refreshed vision based on best practice and sustainable innovation. What’s required is an open-minded, disruptive approach, and for that vision to be enabled by reliable technology. What will these transformed services look like? That’s for financial institutions to discover in collaboration with their technology partners.
The global finance sector is ready to reimagine services and reshape the way societies engage with money—will the UK be the hub for this too?
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