In an open letter to the UK Government, almost 70 fintech founders and CEOs have called for further progress in implementing the reforms advocated by the Kalifa Review into financial services.
The letter, co-signed by Innovate Finance members from the likes of Monzo, Starling and OakNorth, notes positive momentum in implementation in the year since the Kalifa review was published, pointing to the new industry-led Centre for Finance, Innovation and Technology (CFIT), regulatory initiatives like the FCA’s sandbox and the Bank of England’s work on digital currencies, the overhaul of the UK listings regime and the forthcoming introduction of scale-up visas.
Despite the positives, Innovate Finance in November bemoaned the Government’s failure to devise a cohesive national strategy for UK fintech, as recommended by the Kalifa Review. The signatories to today’s letter are demanding further progress if the UK is to retain its position in Europe as the as the best place to start, grow and build a fintech business.
“Rather than resting on our laurels, it is imperative that we continue to build on this momentum and work together to establish an environment in the UK that is even more supportive of and conducive to innovation in financial services,” states the letter.
In pactice, this will entail an update of the regulatory rulebook to fully embrace innovation in an international context and to pave the way for new rules that will drive the UK’s position as a leader in crypto, open banking and RegTech.
The industry is also calling on the Government to address the growth capital gap by shifting the mindset of institutional investors in the UK to take a longer-term view and focus on growth opportunities in Britain while encouraging larger UK institutions to invest more in advanced technology.
“It is now more important than ever that we – industry, government, and the regulators – do not pause, but rather build on this current momentum and commit to cement the UK’s position as the best location in the world to start, build and scale a FinTech business,” the letter concludes.