Funding Circle and Zopa call for more action after Kalifa Review
Chief executives from Innovate Finance, Funding Circle and Zopa are among signatories in an open letter calling for further action on implementing recommendations from the Kalifa Review.
The government-commissioned review into the UK’s fintech sector, led by Ron Kalifa OBE, found that growth funding, increased government support and regulatory sandboxes could lead the UK to the top of the global fintech league table.
One year on from the publication of the Kalifa Review, over 70 chief executives and founders from across the fintech trade body’s membership have come together to welcome strong progress and urge the government not to rest on its laurels.
Among the signatories of the letter were: Lisa Jacobs, chief executive of peer-to-peer business lender Funding Circle; Jaidev Janardana, chief executive of former P2P lender Zopa; and Janine Hirt, chief executive of Innovate Finance.
Other signatories included equity crowdfunding bosses Darren Westlake of Crowdcube, and Jeff Lynn and Jeff Kelisky of Seedrs.
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They said they have been “pleased to see action taken to implement a majority” of the Kalifa Review’s recommendations by UK government, regulators and industry.
These actions include plans for scale-up visas, a new industry-led Centre for Finance, Innovation and Technology (CFIT), a central bank digital currency and a Financial Conduct Authority (FCA) scalebox for growing fintechs.
However, they said that it is important to build on this current momentum in order to “cement the UK’s position as the best location in the world” to start, build and scale a fintech business.
Read more: Kalifa calls fintech innovation centre funding ‘final piece of the jigsaw’
The fintechs said the “regulatory rule book requires further updating” and said it is critical the FCA adheres to competitiveness.
They called for industry, government and regulators to better address the growth capital gap in the UK, work together to create a clear strategy for cryptocurrency and decentralised finance, and should drive forward the timely delivery of CFIT.
Furthermore, the Innovate Finance members said there is an opportunity to accelerate the development and growth of fintech clusters through further investment, such as in research and development.
Read more: “More to do” on Kalifa Review implementation
“In light of the successes outlined above, it is now more important than ever that we – industry, government, and the regulators – do not pause, but rather build on this current momentum and commit to cement the UK’s position as the best location in the world to start, build and scale a fintech business,” the letter said.
“Now is the time for even bolder action to realise the Kalifa Review vision: to work together to maintain the UK’s coveted position as the leading hub for fintech, creating solutions that strengthen our economy, foster greater financial inclusion and wellness, tackle climate change and build a more sustainable financial services sector for all.”