UK Tech Roundup — 2026-05-13

💷 Funding & Deals

Paymentology — $175M London-based card-issuing and payments technology firm Paymentology has secured $175 million in fresh funding, co-led by Apis Partners and Aspirity Partners. Paymentology provides cloud-native card issuing and processing infrastructure, helping banks and fintechs launch payment products across global markets. The round signals sustained investor conviction in the UK's digital payments infrastructure sector.

Keel — Profitable BaaS platform emerges from stealth UK-based Keel has come out of stealth after pivoting away from its original neobank model to reveal a profitable Banking-as-a-Service (BaaS) platform. The company now offers payments, card issuing, compliance, and multi-currency infrastructure for fintech companies operating across international markets. The pivot demonstrates a broader trend of UK startups refining their business models toward profitable infrastructure plays rather than consumer-facing neobanks.

ThatRound — Pre-seed funding raised in two weeks London-based ThatRound, which helps early-stage founders identify the right investors, closed a pre-seed funding round in just two weeks. The platform is using the capital to build out its AI-powered investor-matching engine and grow its team, addressing a persistent pain point for UK startup founders navigating fundraising.

1 sources

techfundingnews.com

techfundingnews.com

🏦 Fintech Focus

NatWest unveils 2026 FinTech Programme cohort of eight AI startups NatWest Group has announced the eight fintech companies selected for its 2026 Fintech Programme, following a competitive application process drawing applicants from across the UK. This year's cohort is notably AI-focused, reflecting the bank's strategic push to embed artificial intelligence across its products and services. The programme provides selected startups with access to NatWest's banking infrastructure, mentorship, and potential co-development opportunities.

City of London calls on tech firms to fight fraud The City of London Corporation's Digital Verification Office (DVO) has launched an initiative calling on technology companies to help combat financial fraud, with the initiative projected to unlock up to £5 billion in economic benefits. The programme aims to connect fraud-fighting technology providers with financial institutions operating in the Square Mile, as APP (authorised push payment) fraud continues to strain the UK financial system.

2 sources

fintech.global

fintech.global

fintech.global

fintech.global

🏛️ Policy & Regulation

UK data protection code for AI and automated decision-making enters force New UK legislation — The Data Protection Act 2018 (Code of Practice on Artificial Intelligence and Automated Decision-Making) Regulations 2026 — has formally been made into law (SI 2026/425). The regulations require the Information Commissioner (ICO) to prepare a statutory code of practice governing how personal data may be processed in the development and deployment of AI systems and automated decision-making tools. This marks a concrete legislative step in the UK's framework for responsible AI.

UK AI regulation bill expected ahead of King's Speech Earlier reporting confirmed that the UK's comprehensive AI regulation bill — intended to address both safety and copyright issues — is expected to be ready before the next King's Speech in May 2026. The bill has been deferred to allow for more detailed future legislation, reflecting the government's stated commitment to a "pro-innovation" approach that avoids stifling the AI sector while addressing legitimate safety concerns. The upcoming King's Speech is therefore a key policy moment to watch for the UK tech ecosystem.

🔬 Innovation Spotlight

Keel's BaaS pivot: A new model for profitable fintech infrastructure Keel's emergence this week offers a notable case study for the UK fintech ecosystem. Rather than competing in the crowded consumer neobank space, Keel has repositioned as a behind-the-scenes infrastructure provider offering payments, card issuing, regulatory compliance, and multi-currency capabilities as a managed service. The company reports it is already profitable — a rare distinction in the BaaS category — suggesting the market is maturing toward sustainable, infrastructure-led business models rather than growth-at-all-costs consumer products.

📊 Week in Numbers

• $175M — Amount raised by London-based Paymentology in its latest funding round, co-led by Apis Partners and Aspirity Partners, one of the largest UK fintech rounds of 2026 so far.
• 8 — Number of AI-focused startups selected for NatWest's 2026 FinTech Programme cohort, up from previous years and reflecting the bank's AI-first strategy.
• £5bn — Estimated economic benefit that could be unlocked if UK tech firms successfully assist the City of London in combating financial fraud, according to the City's new DVO initiative.
• £37bn — Grant and debt financing raised by UK startups in 2025 across 3,808 deals, up from £32bn in 2024, illustrating the structural growth of the UK startup ecosystem.

👀 What to Watch Next Week

• King's Speech (May 2026) — The forthcoming King's Speech is expected to include the long-awaited comprehensive UK AI regulation bill, covering safety and copyright provisions. This will be a defining moment for AI governance in the UK and could significantly affect how domestic startups and multinationals operate.
• NatWest 2026 FinTech Programme kickoff — With eight AI-focused startups now selected, watch for announcements as the cohort begins working with NatWest's teams. Co-development deals and pilot announcements could follow quickly given the AI focus of this year's class.
• Open Banking Expo UK & Europe (13–14 October 2026, London) — While the event is several months away, early registration is now open. This is the key annual gathering for open banking and open finance leaders in the UK, and announcements around the programme and speakers typically begin this time of year.