The Treasury has relaunched an independent review into the fintech sector to spot growth opportunities.
The review, which was previously announced by Chancellor Rishi Sunak in his March Budget, follows the disruption caused from the ongoing Covid-19 pandemic and will establish priority areas for industry, policymakers and regulators to explore so they can support the growth of the sector.
It will be chaired by Ron Kalifa OBE, and the secretariat will be provided by Innovate Finance and the City of London Corporation.
“Tech based solutions in financial services have experienced widescale adoption in the UK, with growth fuelled by a favourable start-up environment that supports entrepreneurship and innovation,” said Kalifa.
“This review will ascertain what is required to accelerate this change, to create a financial services ecosystem that is above all, sustainable, inclusive and world leading.
“Technology has a vital role to play in the UK’s Covid-19 economic recovery. The fintech review will ensure that we can leverage this innovative technology to help consumers and businesses, through a joined-up strategy that combines investment, skills and policy to deliver it.”
“The UK is one of the leading places in the world to start and grow a fintech firm, and I am determined to ensure this continues,” said John Glen, economic secretary to the treasury and city minister.
“The sector is worth around £7bn to our economy and will therefore be vital in ensuring both that the country bounces back post-coronavirus, and continues to be at the forefront of financial innovation now we have left the EU.”
Charlotte Crosswell, chief executive of Innovate Finance, said the review will “underpin the future growth and prosperity of the sector across the whole of the UK”.
“Fintech companies are now entering a phase of maturity that requires action to ensure that entrepreneurs can not only establish and scale their businesses in their home market, but also export their products and services internationally, and our early adoption and support of fintech, now gives us an opportunity to truly bring innovation in financial services,” she added.
“To that end, Innovate Finance already works closely with industry, government and regulators to
identify and spotlight the growth opportunity for UK fintech. We expect the review to do exactly that – by seeking to expand skills and talent available for the sector; improve access to capital funding and investment; connect our national and regional fintech hubs; analyse our approach to policy and regulation for the sector; and thereby ensure that we remain competitive and attractive on the global stage.”