Who made the 5th annual AIFinTech100? & US WealthTech funding plummets in Q1

Fifth annual AIFinTech100 unveils the innovators leveraging AI in finance

FinTech Global has today announced the release of the 2025 edition of its highly anticipated AIFinTech100 list.

Read the full story here.

Research highlight

US WealthTech funding projected to halve for 2025 as investors grow cautious

Key US WealthTech investment stats in Q1 2025:

• US WealthTech funding dropped by 76% YoY in Q1 2025

• Funding is projected to halve for 2025 as investors grew cautious

• Taktile, a category-defining WealthTech platform specialising in automated risk decisioning, raised $54m in a Series B funding round, making it one of the largest US WealthTech deals of the quarter

US WealthTech funding dropped by 76% YoY in Q1 2025

In Q1 2025, the US WealthTech market experienced a sharp contraction in both deal activity and funding compared to the same period last year.

Just 44 deals were recorded, marking an 81% drop from the 235 deals completed in Q1 2024.

Funding mirrored this significant decline, falling to $1bn—down 76% from the $4.1bn raised in Q1 2024.

When compared to the full-year 2024 figures, Q1 2025 represents just 10% of total deals and 12% of total funding.

Funding is projected to halve for 2025 as investors grew cautious

If this pace continues for the remainder of the year, 2025 would end with just 176 deals and $4bn in funding, representing a 59% decrease in deal activity and a 51% drop in total funding YoY.

Despite the steep decline in both deal count and funding, the average deal size in Q1 2025 was $22.9m—up significantly from $17.6m in Q1 2024 and well above the $19.3m average for full-year 2024.

This rise in average deal value suggests that although activity levels have dropped sharply, investors are backing fewer but more capital-intensive rounds.

The trend reflects a growing preference for later-stage or better-capitalised WealthTech firms, as market participants seek to minimise risk and focus on resilience during a period of economic uncertainty and capital market tightening.

The data points to a broader recalibration in the US WealthTech space, where investor appetite remains but is increasingly directed at fewer, higher-conviction bets.

Early-stage deal flow appears to have contracted sharply, with firms needing to demonstrate clear traction, scalability, and regulatory readiness to attract capital.

This selective deployment of funds is consistent with global investment patterns, where uncertainty is reshaping capital flows and prompting more strategic engagement from both institutional investors and venture backers.

Taktile, a category-defining WealthTech platform specialising in automated risk decisioning, raised $54m in a Series B funding round, making it one of the largest US WealthTech deals of the quarter

Backed by Balderton Capital and a consortium of prominent investors including Index Ventures and Tiger Global, this brings the company’s total funding to $79m.

Taktile enables financial institutions, including banks, insurers, and FinTechs, to build and optimise AI-powered risk strategies across credit underwriting, fraud detection, and compliance workflows.

Its platform is already delivering hundreds of millions of high-stakes decisions each month, empowering teams to adapt faster to shifting risk environments while maintaining precision and transparency.

In 2024, Taktile achieved over 3.5x growth in annual recurring revenue, quadrupled its customer base across 24 markets, and received multiple accolades recognising its leadership in decision intelligence.

With its tools being leveraged by institutions such as Allianz and Rakuten Bank, the company is at the forefront of transforming how risk is managed at scale, helping organisations modernise financial decisioning in a regulatory landscape that increasingly demands control, agility, and accountability.

Weekly FinTech deal roundup

A total of $637m raised across 21 FinTech deals this week – Smaller deals dominated the FinTech sector this week, with a total of $637m raised across 21 deals.  Read the full story here.

InsurTech news

• How brokers can stand out with smarter submissions - In an increasingly competitive and complex insurance landscape, standing out in an underwriter’s inbox can make all the difference. For brokers, the quality of their submissions directly impacts the speed, accuracy, and favourability of the terms offered to clients. Read the full story here.

• Certificial launches Vendor Management Partner Program - Certificial, a US-based InsurTech and creator of the Smart COI Network™, has launched its Vendor Management Partner Program to streamline insurance compliance through real-time data access. Read the full story here.

• Porch and Goosehead expand alliance to boost insurance reach - Porch Group has renewed and expanded its partnership with Goosehead Insurance as it prepares to launch the Porch Reciprocal Exchange in early 2025. Read the full story here.

WealthTech news

• Retail options boom: Platforms evolve for new investors - Retail investors have become a powerful force in the options market, with their share estimated to range between 45% and 60%, depending on how it’s calculated. Although their activity surged during the pandemic, it has remained strong, fuelled by the appeal of options as a versatile and leveraged instrument that supports a range of short-term and event-driven strategies. Read the full story here.

• Tackling toggle tax: the key to wealth management efficiency - Wealth management firms are grappling with rising pressures to deliver fast, personalised, and insightful advice to clients. But while expectations grow, many advisors are weighed down by inefficiencies, particularly the mounting problem known as “toggle tax.” Read the full story here.

• Kidbrooke simplifies product universe management - Managing investment product universes has long been a complex and manual task for wealth and asset managers. From tracking fund availability across platforms to managing rebates, model portfolios, and transparency requirements, the administrative workload is often heavy and prone to errors. Much of this process still relies on outdated spreadsheets and disjointed interfaces, making consistency and accuracy difficult to maintain. Read the full story here.

RegTech news

• From aircraft leasing to managing bank risk profiles: The ALMIS story - Founded in 1992 and headquartered in Edinburgh, ALMIS International empowers banks and building societies to manage, monitor, and report on their financial risk profiles. Its solutions provide executives and boards with meaningful insights into both current positions and future projections, helping them make proactive, informed decisions. Read the full story here.

• Navigating innovation, accountability, and fairness in a complex regulatory landscape - FinTech Global recently sat down for an interview with RegTech firm Corlytics CEO John Byrne to learn more about navigating innovation, accountability and fairness in a complex regulatory landscape. Read the full story here.

• The ultimate AI checklist for compliance leaders - Selecting the right AI solution for financial crime prevention is a critical decision for compliance and risk leaders—one that can significantly impact regulatory adherence, operational efficiency, and business continuity. Read the full story here.

CyberTech news

• KYND teams up with Talan to boost cyber risk management for global clients - Talan, a leading international consultancy specialising in data and technology solutions, has partnered with KYND, an award-winning cyber risk management solutions provider to enhance advisory services for clients across the UK, Europe, and the Middle East. Read the full story here.

• Abacus Group acquires Entara to expand cyber services - Abacus Group has acquired Chicago-based Entara to strengthen its cybersecurity and managed IT services for financial firms. Read the full story here.

• Circumvent lands $6m to scale AI cloud security platform - Australian cloud security company Circumvent has raised $6m in seed funding to accelerate its AI-driven platform aimed at transforming how enterprises handle security alerts and remediation. Read the full story here.

ESG FinTech news

• UK finance leaders expected to scale back on ESG and DEI - More than half of senior professionals in the UK’s financial services sector now expect their leadership to reduce emphasis on environmental, social and governance (ESG) and diversity, equity and inclusion (DEI) commitments. Read the full story here.

• Australia unveils green finance taxonomy for net zero push - Australia has officially launched its sustainable finance taxonomy, a key development designed to align the country’s financial system with its net zero ambitions. Read the full story here.

• IFRS launches free ISSB Standards e-learning modules - The IFRS Foundation has introduced a set of e-learning modules to help companies and stakeholders get familiar with the International Sustainability Standards Board (ISSB) disclosure standards. Read the full story here.

Other FinTech news

• The future of smart wealth: Inside eMACH.ai - As the global wealth management industry edges towards an estimated $171trn by 2027, firms face mounting pressure to keep pace with technological advancement and shifting client expectations. The sector, valued at $1.83trn in 2024, is undergoing a fundamental transformation, driven by the need for more personalised, real-time, and seamless digital interactions. Read the full story here.

• DXinsight boosts broker retention with trading personalisation - DXinsight, a new personalisation tool designed for trading platforms, is set to help brokers address some of their most persistent challenges. The solution promises highly tailored experiences for users, which in turn improves engagement, boosts retention, reduces churn, and ultimately raises client acquisition returns. Read the full story here.

• Why US endowments must rethink illiquid assets - As US colleges and universities brace for financial uncertainty, the resilience of their endowments is under scrutiny. Despite the perception that large endowments offer a financial safety net, rising allocations to private assets and the threat of funding cuts or tax changes are creating potential liquidity challenges for even the most well-capitalised institutions. Read the full story here.