Innovate Finance is the advocacy group for the burgeoning Fintech industry in the UK. London has long been a top global financial center, and many policymakers, as well as financial services insiders, want to maintain that status. Hence, the adoption of digital financial services is key. Today, the UK is a leading Fintech hub. This success has been buttressed by a political environment that has been more supportive of change in financial services as the UK aims to remain competitive globally. Innovate Finance has emerged as a leading voice in championing the cause.
Today, in an email, current Innovate Finance President Janine Hurt shared they are currently working on their “Innovate Finance Fintech Manifesto.” Focus areas include:
- Open Banking, Open Finance, Smart Data & AI
- Consumer Credit: Innovate Finance is advocating for a more flexible experience in Buy Now Pay Later regulation
- Economic Crime: They are engaging with the Payment Systems Regulator on how to ensure appropriate and effective reporting on fraud,
- Digital Assets, Blockchain, and Crypto: Innovate Finance supports HM Treasury’s approach to cryptoasset regulation and emphasises the need for proportionate, innovation-friendly rules.
- Net Zero: Innovate Finance is supporting Project Perseus, a national initiative bringing banks, Fintechs and accounting firms together to develop a data tool that uses smart meter energy data to automate greenhouse gas emissions reporting for UK SMEs.
- Challenger Banks: they are participating in consultations related to regulations for challenger banks and advocating for simplifying and streamlining overlapping regulatory regimes.
- Regulators and competitiveness: in response to a Treasury consultation on the FCA and PRA’s new competitiveness objective, Innovate Finance has called for:
- A new ‘Regtech test’ when the FCA or PRA introduces any new regulations to assess how technology.
- A move away from a ‘one size fits all’ approach to regulation and the introduction of a start-up and scale-up test as part of a cost-benefit analysis of new regulations.
- Better resources and expertise in the regulator to understand and support innovation, including dedicated account managers for FinTechs and faster authorisations.
Innovate Finance is also doing outreach in the US as it seeks more engagement with America as well as investment. Innovate Finance also engages with other jurisdictions like Singapore and more.
Hirt also shared a list of new members who have recently joined the group. Of note is the fact that Apple, probably the largest Fintech in the world, is now supporting the group as it expands its Fintech services – most recently with its Open Banking integration to connect its digital wallet to banks in the UK.
There are other US-based firms who have joined, perhaps looking to expand operations or perhaps in frustration to the cumbersome regulatory environment in the US.