Barclays, Lloyds Banking Group, HSBC, NatWest Group, and Santander are the early signatories of the Fintech Pledge

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The new Fintech Pledge is expected to further bolster the UK fintech sector. (Credit: Free-Photos from Pixabay)

UK’s Tech Nation has launched the Fintech Pledge, which aims to speed up the growth of the British fintech sector by facilitating improved collaboration between banks and major fintech companies.

The pledge has been developed by the Fintech Delivery Panel with backing from the UK HM Treasury, said Tech Nation.

The national network for tech entrepreneurs in the UK said that banks can voluntarily sign to the pledge. So far, Barclays, Lloyds Banking Group, HSBC, NatWest Group, and Santander have volunteered to be early signatories via their involvement as members of the Fintech Delivery Panel.

HM Treasury Economic Secretary John Glen said: “The UK is already the best place in the world to start and grow a Fintech, and we’re committed to that remaining the case as our economy bounces back. So I welcome the Fintech Pledge from some of our leading banks and look forward to more firms becoming signatories.”

According to Tech Nation, the Fintech Pledge will define world-class standards for setting up commercial partnerships between banks and fintech companies that are efficient and also transparent.

The pledge calls for providing clear guidance to technology companies on how the onboarding process works with the help of a dedicated online landing page. Another principle of the pledge is that tech start-up firms have to be provided clarity on their progress via the onboarding process.

Fintech Pledge to bolster the UK’s financial ecosystem position

The voluntary pledge is expected to bolster the country’s financial ecosystem position by making sure that partnerships between technology companies and banks are carried out with renewed effort by consolidating on industry leading transparency and communication.

Tech Nation further said that the pledge formalises the sustained work of banks to transform and enhance their processes and engagement with the fintech sector. As per the association, tech start-ups and banks are increasingly looking to partner with each other to bring in better consumer and client outcomes.

Tech Nation Fintech Delivery Panel director Victoria Roberts said: “Building partnerships with established institutions is a fantastic route for fintechs to drive positive change in finance, be it underpinning new customer solutions or transforming regulatory reporting.

“The Fintech Pledge provides a welcome clarity, setting out clear commitments of what fintechs can expect and how best to create productive collaborations.”