Innovate Finance chief executive Charlotte Crosswell has called for stronger industry input into competition regulation for a deep understanding into how high-growth sectors may evolve.
This comes as Seedrs and Crowdcube terminated their £140m planned merger following the announcement from the Competition and Markets Authority (CMA) that it is set to block the deal.
“While we cannot comment on specific mergers, it is very clear that there is going to be ongoing consolidation as the UK fintech sector matures and creates more global champions,” said Crosswell (pictured).
“Due to the uniqueness of high-growth sectors, we urge stronger industry input into competition regulation so there is a deep understanding of how sectors may evolve.
“International investors don’t recognise borders when backing global fintech, and we want to prove that the UK has the ambition to grow and scale the companies of the future.
“This will include international expansion and merger and acquisition activity, and regulation will need to continue to evolve and adapt accordingly.”
Daniel Rajkumar, managing director of peer-to-peer lending platform and principal Rebuildingsociety, agreed that stronger industry input into competition regulation would benefit the sector.
“I think the trade associations can input into the CMA’s understanding of competition which would be a good thing,” he said.