The review is expected to help in determining priority areas for industry, policy makers, and also regulators to explore for supporting the UK fintech sector
The HM Treasury, which is the UK’s economic and finance ministry, has launched a review into the country’s fintech sector to identify opportunities for supporting further growth in the industry.
The independent review dubbed as the Fintech Strategic Review will be headed by Ron Kalifa, ex-CEO of Worldpay, a payment processing company.
According to the HM Treasury, the review will help in determining priority areas for industry, policy makers, and also regulators to explore for supporting the UK fintech sector.
Estimated to contribute nearly £7bn to the economy, the financial technology industry in the UK employs nearly 60,000 people across the country, said the HM Treasury.
The ministry believes that the Fintech Strategic Review will help in making sure that the UK fintech sector has the resources for its growth and success, that conditions are appropriate for the extensive adoption of financial technology, and that the country’s reputation across the world for innovation is sustained and advanced.
Ron Kalifa said: “Tech based solutions in financial services have experienced wide scale adoption in the UK, with growth fuelled by a favourable startup environment that supports entrepreneurship and innovation.
“This Review will ascertain what is required to accelerate this change, to create a financial services ecosystem that is above all, sustainable, inclusive and world leading.”
The HM Treasury said that as part of the review, five workstreams will offer recommendations pertaining to skills and talent, investment, policy, national connectivity, and global attractiveness.
The ministry expects the findings of the Fintech Strategic Review to be reported to it in early 2021.
UK fintech sector attracted investments totalling £4.1bn in 2019
Last year, the UK fintech sector gained £4.1bn in venture capital, and since 2015, has been estimated to have grown by almost 70%, said the HM Treasury.
The UK Economic Secretary to the Treasury & City Minister John Glen said: “The UK is one of the leading places in the world to start and grow a fintech firm, and I am determined to ensure this continues. The sector is worth around £7 billion to our economy and will therefore be vital in ensuring both that the country bounces back post-Coronavirus, and continues to be at the forefront of financial innovation now we have left the EU.”