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independent review led by Ron Kalifa sets out strategy to put UK at the top of the global fintech league table
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recommendations include a new fintech scale-up visa stream, a 'scale box' for growing firms and changes to UK listings rules
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support for sector will create jobs and deliver better outcomes for people and businesses across the UK
The UK has more than 10 per cent of the global market share in fintech and the sector is now worth more than £11 billion a year to the UK economy.
The independent review, led by Ron Kalifa OBE, finds the UK is at a pivotal moment and presents a wide-ranging strategy and delivery model to build on its existing attractiveness to start-ups firms and become the best place for a fintech business to reach global scale.
It marks an important step in the Chancellor Rishi Sunak's plan to make the UK the most open and dynamic place in the world to operate a financial services business. The government will now examine the recommendations and respond in due course.
The review highlights the opportunity to create highly skilled jobs across the UK, boost trade and extend a competitive edge over other leading fintech hubs. Recommendations include:
- introducing a new 'fintech scale up' visa route for specialists from around the world
- implementing a 'scale box' to provide regulatory support for growing firms
- improving UK listings rules with free float reduction and dual class shares
- creating a £1 billion-pound fintech 'growth fund' to help firms grow independently
- establishing a private sector-led Centre for Finance, Innovation and Technology to support national coordination and growth in fintech across the UK
Rishi Sunak, Chancellor of the Exchequer, said:
Fintech is one of the UK's great success stories and will help us seize new opportunities around the world.
We must now build on our global reputation for fostering innovative start-ups and ensure firms can access the talent, finance and support they need to scale up here in the UK.
This review will make an important contribution to our plan to retain the UK's fintech crown, create more skilled jobs, and deliver better financial services for people and businesses.
Ron Kalifa OBE said:
Fintech has the power to change lives, both in terms of job creation and better wages that are so essential to our recovery; and making financial services more accessible and relevant to people's lives.
Britain has a proud record of starting-up and scaling-up some of the best known fintech products, but we cannot rest on our laurels. The next powerhouses will not be created by accident.
We must continue to nurture our start-up culture, but crucially we must also give our high growth firms the support to become global giants.
With the right reforms that encourage entrepreneurialism, investment and make it easy to attract and invest in talent, Britain can usher in a period of dominance that can help us build back better from Covid-19.
