European WealthTech funding rebounds in Q2 & How b-next stays ahead in RegTech

How b-next stays ahead of the curve in an evolving RegTech space

Founded in 1989, German RegTech firm b-next focuses on the surveillance and monitoring market, always guided by its customers’ needs. The company develops solutions that help institutions comply with current and future regulations, avoid fines, and maintain a strong reputation in their markets.

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Research highlight

European WealthTech funding rebounded by two thirds in Q2 driven by deals over $100m 

Key European WealthTech investment stats in Q2 2025: 

• European WealthTech funding rebounded by two thirds QoQ in Q2 

• Funding growth was driven by a 3.7x surge in deals over $100m  

• FNZ, a global end-to-end technology platform powering wealth and asset management businesses, secured the biggest European WealthTech deal of the second quarter with a $500m equity injection from its long-term institutional backers 

European WealthTech funding rebounded by two thirds QoQ in Q2 

In Q2 2025, the European WealthTech sector recorded just 13 deals, marking a sharp 71% drop from the 45 deals completed in Q2 2024 and a 46% decline from the 24 deals seen in Q1 2025.  

Total funding for the quarter reached $700m, down 53% from the $1.5bn raised in Q2 2024 but up 67% compared to the $418.3m recorded in Q1 2025.  

The steep YoY contraction in deal volume suggests a continued pullback in broad investor engagement, while the QoQ rise in funding indicates that, despite fewer deals, capital is being concentrated into a small number of higher-value opportunities.  

The average deal size surged to $53.8m in Q2 2025, compared to $33.4m in Q1 2025 and $33.4m in Q2 2024, highlighting a clear market pivot toward fewer but larger transactions. 

Funding growth was driven by a 3.7x surge in deals over $100m 

Funding from deals under $100m in Q2 2025 totalled $200m, down 49% from $392.7m in Q2 2024 and 29% below the $282.8m raised in Q1 2025.  

Meanwhile, deals valued at $100m or more brought in $500m during the quarter — a 55% drop from the $1.1bn raised by such deals in Q2 2024, but a sharp 3.7x increase from the $135.5m recorded in Q1 2025.  

Despite the overall decline in activity, this QoQ surge in large-scale investments indicates that investor interest remains strong for high-growth or later-stage European WealthTech firms.  

The capital shift away from early-stage deals and towards fewer, higher-value rounds continues to define market behaviour in an otherwise cautious funding environment. 

FNZ, a global end-to-end technology platform powering wealth and asset management businesses, secured the biggest European WealthTech deal of the second quarter with a $500m equity injection from its long-term institutional backers 

As a key player in modernising wealth management infrastructure, FNZ supports financial institutions worldwide with integrated solutions that streamline operations and enhance client engagement.  

This substantial capital infusion strengthens the company’s financial foundation, enabling sustained investment in technology innovation, operational capabilities, and talent.  

FNZ’s platform continues to reshape how wealth management services are delivered—improving accessibility, efficiency, and scale—while this latest funding round reflects deep investor confidence in its strategic execution and ambition to lead the future of digital wealth transformation. 

Weekly FinTech deal roundup

Nearly $2bn was raised across 20 FinTech deals this week – The FinTech sector had another good week for deals, with a total of $1.9bn raised across 20 deals. Read the full story here.

WealthTech news

• Four trends reshaping wealth management in 2025 - The first half of 2025 has revealed clear shifts in wealth management, with firms moving beyond discussions of investment strategies to focus on access, personalisation, experience and automation. Kidbrooke, which offers a unified analytics solution for investment and wealth firms, recently outlined the four trends are shaping how advice is delivered, scaled and humanised across the sector. Read the full story here.

• Devexperts DXtrade reshapes options trading - Deciding whether to build an options trading platform in-house or to purchase a third-party solution remains a major challenge for brokers and exchanges. Many firms lack the specialised technical capacity to develop these platforms internally, while concerns around the rigidity of white-label solutions often persist. Read the full story here.

• Zeidler supports funds on ESMA SFDR alignment - As ESMA closes its review for the first half of the year, it has released its Final Report on the 2023–2024 Common Supervisory Action (CSA) focused on sustainability disclosures under the Sustainable Finance Disclosure Regulation (SFDR), offering fresh insight for fund managers and compliance teams navigating an evolving regulatory environment. Read the full story here.

InsurTech news

• Why digital health is redefining bancassurance - Bancassurance is undergoing a major shift. Once focused on product sales, it’s now becoming a customer-first model centred around digital health and wellness. In 2025, this transformation is being driven by AI, personalised banking experiences, and the seamless integration of insurance into everyday financial interactions, according to dacadoo. Read the full story here.

• How to meet sales targets ethically in insurance pricing - Quantee has outlined two advanced methodologies for performing ethical price optimisation in insurance pricing, designed to meet sales and retention targets without resorting to the controversial practice of price walking. This approach is particularly timely as regulatory scrutiny increases in markets like the UK, where price walking—charging loyal, renewing customers more than new clients—has been banned. Read the full story here.

• Ushur unveils AI platform tailored to financial services - Ushur, a leading provider of AI-powered Customer Experience Automation™ solutions, has announced the launch of Ushur Intelligence, a purpose-built platform aimed at regulated sectors including healthcare, insurance, and financial services. Read the full story here.

RegTech news

• How client onboarding is adapting to the new realities of financial compliance - FinTech Global recently sat down for an interview with Remonda Kirketerp Moller, CEO of Muinmos, to learn more about adapting compliance to the new requirements of an evolving digital world. Read the full story here.

• Tackling compliance silos in finance - Financial institutions are taking compliance seriously, but many are plagued with siloed departments that reduce efficiency, according to a panel at the Global RegTech Summit. Read the full story here.

• Can RegTech harmonize global data privacy challenges? - Data privacy continues to become an important topic for regulators around the world, as more regulations are released each year bolstering rules to ensure greater protections. Read the full story here.

CyberTech news

• Cybersecurity firm AirMDR bags $15.5m seed funding - AirMDR, an AI-native Managed Detection and Response (MDR) company, is aiming to bring enterprise-grade cybersecurity to small and medium-sized businesses at an affordable price. Read the full story here.

• Cybersecurity firm AirMDR bags $15.5m seed funding - AirMDR, an AI-native Managed Detection and Response (MDR) company, is aiming to bring enterprise-grade cybersecurity to small and medium-sized businesses at an affordable price. Read the full story here.

• Markel boosts cyber cover with free tools - Markel, a specialist insurer with a strong UK presence, has introduced new pre-loss services to help its cyber insurance clients better manage digital risks and privacy compliance. Read the full story here.

ESG FinTech news

• ESG onboarding strengthened by KYC Portal CLM - Environmental, social and governance (ESG) factors are moving from the periphery to the core of Know Your Business (KYB) processes as regulators and stakeholders demand more transparency and accountability. KYC Portal CLM can now embed ESG into their KYB workflows. Read the full story here.

• Singapore banks warn of nature loss impact on lending - In a landmark move for the financial sector, DBS, OCBC and UOB have collaborated, with backing from the Monetary Authority of Singapore (MAS), to launch an unprecedented study aimed at uncovering the financial implications tied to nature-related risks. Read the full story here.

• RiskSmart’s policy module transforms GRC workflows - Managing policies is rarely at the top of anyone’s excitement list, yet it’s one of the most crucial areas a company must get right. For anyone with “risk” or “governance” in their job title, the consequences of poor policy management are all too familiar. RiskSmart’s Policy module was created to end that pain point once and for all, turning policy chaos into streamlined control. Read the full story here.

Other FinTech news

• Why API-driven CLM is key for compliance - The pressure on financial institutions to modernise client lifecycle management (CLM) is intensifying as regulatory complexity grows and clients expect seamless onboarding and servicing. Read the full story here.

• EBA proposes new AML rules for EU firms - The European Banking Authority (EBA) has published a new consultation outlining proposed Regulatory Technical Standards (RTS) to overhaul how anti-money laundering (AML) and counter-terrorism financing (CFT) are supervised across the EU. The proposed changes are intended to create consistency, clarity and stronger oversight across the bloc while informing the work of the new Anti-Money Laundering Authority (AMLA). Read the full story here.

• Inspecting GenAI outputs for safer AI adoption - When it comes to adopting generative AI tools like Zoom AI Companion and Microsoft Copilot, many organisations focus their attention on setting up robust guardrails. They work hard to restrict what these tools can access, manage permissions and set clear usage policies. While this foundational layer of protection is vital, it is not the whole story. Guardrails limit what AI can see, not necessarily what it can say. Read the full story here.