Innovate Finance, the membership association for global fintech, announced on Thursday it sought support from UK Government, as well as political parties across the spectrum, for its Fintech Election Pledge. While sharing details about the Fintech Election Pledge initiative, Innovate Finance stated:
“The United Kingdom’s digital sector is at the heart of the UK economy driving growth, innovation, competitiveness and productivity across the nation. The UK’s digital economy accounts for 16% of UK domestic output, comprises 3 million workers, and between 2012 – 2016 attracted more venture capital (VC) and private equity investment than any other European country, at £28bn. At the heart of this digital revolution, stands the UK’s thriving Financial Technology (FinTech) sector. In part driven by progressive policy decisions supporting competition and innovation in financial services, the UK FinTech sector now contributes £7bn to the economy and employs over 60,000 people – from engineers to computer scientists and mathematicians.
“However, our world-leading position in FinTech is far from assured. The UK is going through a period of enormous political, social and economic change, and data on the UK FinTech sector in 2016 has shown this to be the case. Whilst VC investment in global FinTech rose to $17.4bn last year (an increase of 10.9% from 2015), over the same period UK FinTech saw a 33.7% decline in investment, to $783m. Although the United Kingdom continues to remain internationally competitive, ranking 3rd globally for investment in FinTech, the UK must continue to remain open to the talent, ideas and capital which underpin and strengthen our digital economy. It is for this reason that we call upon the Government, as well as political parties across the spectrum to take action to ensure we continue to build a more innovative and entrepreneurial country, by supporting this FinTech Election Pledge.”
- Attract global and develop local talent
- Create a deeper, more connected investment environment
- Transform the nature of the state with 21st-century regulation
The organization went on to add:
“A central part of any industrial strategy must therefore include an appreciation of digital infrastructure, and in doing so we must reimagine institutions and regulators in light of the digital economy. Accordingly, we would encourage all regulatory bodies to put technology and innovation at the heart of their operations, and call upon the UK Government and political parties to commit regulators to a digital transformation, gearing investment towards growing their technological understanding, infrastructure, and ability to encourage responsible innovation.”