Five more lenders have signed the Fintech Pledge, a Treasury-backed initiative to set principles on collaboration with fintechs that will boost growth in the fintech sector.
Atom Bank, Co-operative Bank, Nationwide Building Society, TSB, and Virgin Money have all signed the pledge that commits banks to implement the principles.
These include the requirement for banks to provide clear guidance to technology firms on the onboarding process and to give feedback to these firms. The practices must be implemented within six months of signing the pledge.
The new banks signed up to the pledge join the existing signatories of Barclays, HSBC, Lloyds Banking Group, NatWest Group and Santander.
Tech Nation said these first signatories have started implementing the principles, with some fintechs already reporting positive effects.
“The UK is a leading global destination to start, grow and invest in fintech – and partnerships between small innovative firms and established financial institutions will be important to maintain our leadership,” said John Glen, economic secretary to the Treasury.
“I am pleased to see five more banks and building societies committing to develop these valuable partnerships by signing up to the Fintech Pledge.”
“The UK is a global leader in fintech, with UK fintechs raising £4bn in 2019, and being home to 44 per cent of Europe’s fintech unicorns, but we need to keep building on this to remain at the cutting edge,” said Gerard Grech, chief executive, Tech Nation.
“As the UK embarks on a new relationship with the EU and forms new partnerships with other countries, fintech will be key to our international success.
“Initiatives like the Fintech Strategic Review, of which Tech Nation is one of the stream leads, and the Fintech Pledge, illustrate the UK’s forward-thinking approach to innovation, and a desire to maintain an ecosystem that supports the growth of this valuable sector.”
The Fintech Pledge is also supported by the Fintech Delivery Panel, which was established in 2017 by Tech Nation at the request of the Treasury.
The panel brings together fintech industry experts who collaborate to ensure the UK continues to be the intellectual, technological, and financial capital of the world for fintech.
The panel said it is also enabling fintech solutions to financial inclusion challenges and driving diversity in the fintech sector.
“Fintechs and financial institutions working together effectively offers an exciting opportunity to scale the newest innovations,” said Victoria Roberts, director of Fintech Delivery Panel at Tech Nation.
“I’m thrilled to see wider uptake of the Fintech Pledge principles, putting communication and collaboration at the heart of these important partnerships.”