The UK government has unveiled a number of new support measures for the UK’s fintech industry, signalling its commitment to the sector in the post-pandemic economy.
Speaking at UK Fintech Week in April, Chancellor Rishi Sunak announced a new Financial Conduct Authority (FCA) ‘scale box’, a Centre for Finance, Innovation and Technology and a taskforce into a digital centralised currency.
The FCA ‘scale box’ will create a “one-stop shop for growth stage firms”, in an effort to improve the long-term prospects for fintech firms.
These new measures were initially outlined in the Kalifa Review, which was published in February.
During UK Fintech Week, the review’s author Ron Kalifa said that “we don’t have a problem with regard to start-ups in the UK, we have a problem with scale-ups.”
He welcomed the new government efforts, but said that more could be done to ensure the success of UK fintech. He called for the government to create a digital finance package that designs a new framework for fintech, and to use institutional capital to create a fintech growth fund worth £1bn.
“We have a huge opportunity to make a transformational change for the UK,” Kalifa added.
“It’s going to be about financial inclusion, innovation, and that’s what the fintech sector represents.”
According to data from Innovate Finance, investment into the UK’s fintech sector hit a record £2.5bn in the first quarter of 2021 – a rise of 331 per cent year-on-year.