Fintech groups have called for more research and innovation (R&I) support to sustain the UK financial services sector’s world-leading position.
A report by Fintech Scotland and Fintech Wales warns global comparisons show there is a need to act now to protect the UK’s vital industries in the face of stiff competition from the rest of the world.
The report warns that (R&I) in financial services and subsequently fintech is less mature than in other economic sectors, which could be an issue as the UK attempts to adapt to the post-Brexit and post-pandemic world.
“The necessary mechanisms to encourage collaborative R&I ideas and see them through to exploitation is missing,” the report said.
“Current efforts are often reactive rather than proactive, and fintech is a relatively new landscape for universities and research.”
It proposes fintech challenge competitions, the creation of a fintech innovation institute and regional networks to boost and encourage R&I.
“We know from experience that fintech across the UK offers real potential for economic growth, future employment and greater financial inclusion,” Nicola Anderson, chief executive of Fintech Scotland, said.
“This paper proposes a suite of purposeful and collaborative actions that can achieve success through commitment and regional contributions. The paper is just the start and we’re looking forward to continuing this work with fellow fintech leadership colleagues and teams across the UK.”
Sarah Williams-Gardener, chief executive of Fintech Wales, said the UK will lose its international competitiveness if it doesn’t create the right conditions for innovation.