The City of London, working with HM Treasury, has published a review of UK financial services declaring there is an opportunity to become more efficient and competitive.
While Brexit has thrown a wrench in the works, the UK continues to be a top global financial services center. The report states that financial services, directly and indirectly, help employ 2.5 million individuals driving 12.5% of the UK’s economy. As is well known, the UK is a top Fintech hub – leading Europe for innovation in financial services.
The report explains that the UK is facing increasing competition from around the world, and policy must be put into place to maintain and grow its status as a leading financial services center.
To quote the review:
“A regulatory regime which supports the UK’s unique place in the global marketplace, with a focus on growth and competitiveness, is one key component. Ensuring the industry is ready to adopt new technologies and improve digital skills across its workforce is another.”
Growing financial and professional services (FPS) is the mission and the City of London has crafted a roadmap to accomplish this goal.
While the US has declined in regard to regulatory perception, the UK leads the pack.
As for Fintechs specifically, the UK is home to 3200 Fintechs – more than any other country in Europe. Digital assets and blockchain are part of the equation, and the government is working towards a regulatory regime to enable innovation in this sector.
While a smaller market, in 2022, PE and VC Fintech investment in the UK grew faster than in the US.
Chris Hayward, Policy Chairman of the City of London Corporation, sums everything up:
“The UK financial services industry is world-leading and globally respected. But in a challenging global environment, and with competition from other financial centres intensifying, we need to collectively ensure its long-term success.”
The report entails a lot of good information and is very supportive of Fintech and financial services overall. It will be interesting to see if the actions match the words as the UK seeks to build upon what has already been established.
The Review may be downloaded here.
