Fintech innovation is reshaping how capital flows, payments settle, risk is underwritten and regulated, and trust is established in digital financial systems. In the UK and across Europe, the public innovation ecosystem supports Fintech through R&D grants, innovation loans, innovation procurement, accelerators and awards.
Whether you’re building embedded finance infrastructure, AI-driven compliance tools, digital identity stacks, or scalable payment systems – there is plenty of competitive funding designed to support you.
Why Non-Dilutive Funding Matters for Fintech
Grants and innovation loans let Fintech founders retain ownership while tackling deep technical challenges, regulatory sandboxes, and infrastructure-level problems that might otherwise be too capital-intensive or risky..
In the wider professional services sector, that could include legal, financial and consulting services, grant funding can help reduce the technical and financial risk in developing and testing novel solutions to complex problems – with efficiency and productivity being the major drivers.
What Types of Funding Are Available
R&D Grants (UK & EU) for FinTechs and Professional Services
Government-backed grants de-risk technological innovation and experimental development. These include:
- Sector-Specific Grants – open to Fintechs and professional services developing genuinely novel technology or solutions to systemic financial challenges.
- Horizon Europe & EIC Programmes – ideal for EU-linked (or collaborative) projects addressing large-scale market or regulatory systemic challenges.
- Thematic Calls (e.g. Professional & Financial Services) – funding aimed at digital transformation, compliance tech, and financial infrastructure innovation.
- Eureka Eurostars – collaborative, close to market innovations and developments that foster cross border collaborations in pan-Europan network.
Innovation Loans (UK) for FinTechs and Professioanl Services
In the UK, Innovation loans bridge the gap between grant-funded development and commercial scale. They are:
- Lower-interest, flexible loans from Innovate UK’s competitive process.
- Designed for late-stage development, market validation, regulatory milestones and tech debt reduction.
- No PG from founders and no asset-based security needed
- Generous repayment period (up to 7 years)
- Significant funding of up to £5m in low interest loans for FinTechs
Read our full article on IUK Innovation Loans here
Awards for FinTechs and Professional Services
Fintech founders should also consider prize-led awards and sector recognition funds. These often provide:
- Non-dilutive cash awards (e.g. £50k–£100k+), which are excellent for niche Innovator Projects.
- PR lift and strategic access to partners, regulators and ecosystem stakeholders. High-impact for underrepresented founders or Fintechs with strong social impact or inclusion value propositions.
R&D Tax Relief and Complementary Support
While not a “grant” per se, R&D tax credits can significantly offset development costs, especially early on. They are best used in combination with grants and loans.
We are always happy to introduce you to our trusted partners who can help with these R&D tax clients.
Typical Activities Covered by Grants & Loans
Across UK and EU programmes, eligible activities generally include:
- Salaries for engineers, data scientists, and product developers
- Testing, prototyping, sandbox trials and validation
- Cloud environments and security tooling
- Subcontracted expertise (e.g. regulatory or compliance specialists)
- Dissemination, consortium management, and international collaboration
Real-World Examples of Success
- Kore Labs – multiple R&D grants totalling over £3m to expand intelligent finance solutions and strategic partnerships.
- AlphaLoops — a strategic grant that matched seed equity and accelerated product development.
How Long It Takes
Grant timelines vary by programme:
- UK single-applicant grants: 8–12 weeks from submission to decision
- Collaborative / EU bids: 3–6 months from submission
- EIC Accelerator: multi-stage, longer evaluation periods ranging from 6 months+
- Innovation loans typically operate on similar competitive cycles, 8–12 weeks from submission to decision
Tips for Fintech Founders
To boost your chances of success:
- Map your tech roadmap to funding stages – R&D, validation, scale-up.
- Articulate your innovation and impact hooks – impact in financial services, user outcomes, regulatory progress.
- Sequence funding instruments so each unlocks the next.
- Bring in domain-specific advisers early – particularly for innovation loans and R&D tax credits.
Next Step
Grant funding isn’t an afterthought – it’s a strategic asset in any Fintech funding toolkit. Explore relevant competitions on our Fintech sector page, or get in touch for a tailored review of your funding strategy.
Alex Chalkley
I have over 20 years experience in founding and scaling businesses, mainly focused on the non-dilutive funding sector. Since 2008, I have built, trained and mentored teams to successfully draw down over €100m in non-dilutive funding from the UK and EU for clients spanning multiple sectors.
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