One year on from the publication of the Kalifa Review – a government-backed evaluation of the UK fintech sector – industry experts say the government needs to do more to ensure the sector retains its “crown”.
The IS report published on 26 February 2021 after Chancellor of the Exchequer asked Ron Kalifa to conduct an independent review to identify ways to support the UK fintech sector.
Some of the proposals included amending UK listing rules to make the country an attractive location for IPOs, improving technology visas to allow people around the world to access the UK more easily and a Financial Center , Establish Innovation and Technology.
Since then, the UK has consolidated its position as a major European and global fintech hub. London is a significant player in particular and is home to large fintech firms such as Wise, Revolut and Monzo.
Last year, venture capital investments in UK fintech reached record high of $ 11.6bnmaking it the largest technology sector to invest in.
Despite this success, fintech stakeholders hit a cautious tone in 2022. Earlier this week, more than 70 fintech CEOs and founders signed with an open letter calls on the government to update the “regulatory rulebook” to ensure that the sector remains globally competitive.
Industry experts said RATN that the UK fintech is in a much stronger position ahead of the one – year anniversary of the Kalifa Review.
“A year ago, the Kalifa Review indicated that the UK was in danger of losing its finite position in the fintech world,” said Anders La Cour, CEO of Banking Circle Group. “Twelve months went by and the UK held on to its crown.”
However, despite clear signs of growth from the review, UK – based fintech executives have said they believe there is much more to do.
“The first anniversary of the Kalifa Review is a timely reminder that the UK must take action to maintain its advantage as a global hub for fintech,” said Martin Wilson, CEO of Digital Identity Net. “Investment in fintech rose seven times from 2020 onwards and open banking, an integral part of many fintech services, was a big year, with one million users coming in between September 2021 and January 2022. ”
Earlier this month, the number of open banking users in the UK more than five million.
While Wilson praised the fintech boom in 2021, he also suggested that government and financial institutions should implement more financial technologies in their own systems to “improve the way we do business as a country”. .
Kalifa Review: UK fintechs want better access to global talent
Mike Laven, CEO of Currencycloud, warned that “policy makers do not have the capacity to be complacent and must be more assertive if they want the country to remain globally competitive within the fintech sector”.
He added that the UK fintech industry needs easier access to global talent and markets, but that “policy makers still need to make satisfactory progress on either of these points”.
Laven believes that, while the report was well-intentioned, its recommendations do not go far enough: “Only modest recommendations will win; If the British government does not start thinking more, it will start to miss out on opportunities and growth for those who do. “
Daumantas Dvilinskas, CEO and co-founder of TransferGo, thinks the UK needs to do more to attract more diverse talent across more areas of the UK: “If the government wants to make the UK a global innovation hub by 2035 it will crucial. continue to attract talent overseas – not just to London but to other parts of the UK while also focusing on leveling up. ”
Judith Hartley, Chief Executive of British Patient Capital, said “structural issues remain” despite last year’s success.
Hartley noted the lack of institutional investors in the UK who support domestic innovation.
“By not investing in UK venture and enterprise growth funds, UK institutional investors are failing to create the value created by fast-growing firms operating in some of the most exciting and dynamic sectors in the economy, ”she said.
The UK needs to do more to maintain a ‘fintech crown’
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