At a presentation by the City of London, a report by KPMG entitled the Value of Fintech, was distributed along with a discussion on the need for the UK to do more to maintain and improve their global Fintech prominence.
Speaking for the City of London, Catherine McGuinness, Policy Chairman, City of London Corporation, commented;
“Fintech is a real asset for the UK’s economy and we are a global leader in our own right. The City has supported this growth and we have seen the services provided move on from traditional banking services to other forms of financial services like insurance, asset management, capital markets and regulation. It is the latest evolution of financial services and while there is a lot of focus on the customer end provided, businesses, not just those in financial services, need to embrace it too. I hope that industry and Government seriously consider these recommendations in this report, especially the possibility of a sector deal. If they do then I am sure that fintech will continue to go from strength to strength in the years to come.”
More Action Needed
UK Fintech is expected to continue to grow and lead the world but only if a number of recommendations are adopted by both the public and private sector.
The report outlines 10 specific recommendations to ensure the UK maintains its status as the global Fintech leader.
Fintech in the UK has become enormously important to their economy. During the last year, Fintech contributed £6.6 billion to the economy employing over 60,000 people. An already established global financial presence along with sound regulations and government support, are the main reasons the UK stands tall amongst its peers around the world. Yet this is not the time to sit still and revel in this accomplishment. Government entities and Fintech industry participants must join to propel Fintech further.
The most important recommendation by KPMG is the need to keep a single and consistent policy that is supportive of Fintech.
Deals, announced in 2017 as part of the Government’s proposals for a modern Industrial Strategy, as seen as better supporting the sector.
Additional recommendations of the report include:
- Clarity on regulatory perimeters
- Making the Fintech Sandbox easier for authorisation and regulation
- Embrace the promise of Fintech nationally, not just in London
- Financial services association should work together to boost Fintech. The Government should consider a match making program pairing Fintechs with traditional finance.
- The Government should introduce measures to unlock institutional markets and seek to attract the best talent post-Brexit.
Paul Merrey, Strategy Partner, KPMG UK, described Fintech as “valuable for customers, businesses and society.
“Today’s report highlights the key areas fintech is making a difference, including improving financial inclusion, customer experience and transparency. Many countries are now taking steps to attract and retain fintech companies. A sector deal would be a major boost to the UK’s ability to maintain its status as a global fintech leader.”
Charlotte Crosswell, CEO, Innovate Finance, said the Fintech continues to thrive in the UK. London is recognized as the number one ecosystem globally.
“To maintain our leading position, Innovate Finance looks forward to promoting the sector and supporting government and regulators to continue to attract investment and talent. As highlighted by this timely and valuable report, collaboration across the industry, supported by government, is critical in ensuring the UK maintains its leading global position. We look forward to working with the City of London Corporation and partners in Government to ensure the recommendations in this report are delivered, not just for the benefit of our members but the wider UK Fintech sector.”