Fintech News – UK needs to have a fintech taskforce to safeguard £11bn industry, says article by Ron Kalifa
The federal government has been urged to establish a high-profile taskforce to guide innovation in financial technology as part of the UK’s growth plans after Brexit.
The body, which could be called the Digital Economy Taskforce, would get in concert senior figures coming from across government and regulators to co-ordinate policy and get rid of blockages.
The suggestion is actually a part of a report by Ron Kalifa, former employer of the payments processor Worldpay, that was asked with the Treasury in July to think of ways to make the UK 1 of the world’s reputable fintech centres.
“Fintech is not a market within financial services,” states the review’s writer Ron Kalifa OBE.
Kalifa’s Fintech Review lastly published: Here are the five key findings Image source: Ron Kalifa OBE/Bank of England.
For weeks rumours are actually swirling concerning what could be in the long-awaited Kalifa assessment into the fintech sector and also, for the most part, it seems that most were position on.
According to FintechZoom, the report’s publication comes nearly a year to the day time that Rishi Sunak originally said the review in his first budget as Chancellor on the Exchequer in May last year.
Ron Kalifa OBE, a non executive director with the Court of Directors at the Bank of England and also the vice chairman of WorldPay, was selected by Sunak to head up the deep plunge into fintech.
Here are the reports 5 key recommendations to the Government:
Regulation and policy
In a move that has got to be music to fintech’s ears, Kalifa has proposed developing and adopting common data standards, which means that incumbent banks’ slow legacy systems just simply will not be sufficient to get by anymore.
Kalifa has also suggested prioritising Smart Data, with a specific target on receptive banking as well as opening upwards a great deal more channels of communication between bigger financial institutions and open banking-friendly fintechs.
Open Finance even gets a shout out in the report, with Kalifa informing the government that the adoption of available banking with the aim of achieving open finance is of paramount importance.
As a consequence of their increasing popularity, Kalifa has in addition advised tighter regulation for cryptocurrencies and also he has also solidified the dedication to meeting ESG objectives.
The report seems to indicate the construction of a fintech task force as well as the improvement of the “technical comprehension of fintechs’ markets” and business models will help fintech flourish in the UK – Fintech News .
Watching the good results on the FCA’ regulatory sandbox, Kalifa has also proposed a’ scalebox’ that will assist fintech businesses to develop and expand their operations without the fear of choosing to be on the wrong side of the regulator.
To deliver the UK workforce up to date with fintech, Kalifa has suggested retraining employees to satisfy the growing needs of the fintech segment, proposing a sequence of low-cost training courses to accomplish that.
Another rumoured accessory to have been incorporated in the article is actually an innovative visa route to ensure high tech talent isn’t place off by Brexit, guaranteeing the UK continues to be a best international competitor.
Kalifa indicates a’ Fintech Scaleup Stream’ that will supply those with the required skills automatic visa qualification and also offer assistance for the fintechs hiring high tech talent abroad.
As previously suspected, Kalifa suggests the federal government create a £1bn Fintech Growth Fund to assist homegrown firms scale and expand.
The report suggests that the UK’s pension pots may just be a great tool for fintech’s financial support, with Kalifa mentioning the £6 trillion now sat within private pension schemes within the UK.
According to the report, a small slice of this cooking pot of money may be “diverted to high advancement technology opportunities as fintech.”
Kalifa has also advised expanding R&D tax credits thanks to their popularity, with ninety seven per dollar of founders having utilized tax incentivised investment schemes.
Despite the UK being house to several of the world’s most effective fintechs, very few have chosen to subscriber list on the London Stock Exchange, for truth, the LSE has noticed a forty five per cent decrease in the number of companies which are listed on its platform since 1997. The Kalifa evaluation sets out steps to change that and makes some suggestions that seem to pre-empt the upcoming Treasury backed review directly into listings led by Lord Hill.
The Kalifa report reads: “IPOs are thriving globally, driven in section by tech businesses that have become essential to both consumers and businesses in search of digital resources amid the coronavirus pandemic plus it’s important that the UK seizes this particular opportunity.”
Under the strategies laid out in the review, free float needs will likely be reduced, meaning businesses no longer have to issue a minimum of 25 per cent of their shares to the public at almost any one time, rather they’ll just have to give ten per cent.
The evaluation also suggests implementing dual share components that are a lot more favourable to entrepreneurs, indicating they will be able to maintain control in their companies.
To make certain the UK is still a best international fintech desired destination, the Kalifa assessment has recommended revising the present Fintech News – “Fintech International Action Plan.”
The review suggests launching an international fintech portal, including a clear introduction of the UK fintech arena, contact information for localized regulators, case research studies of previous success stories as well as details about the help and support and grants available to international companies.
Kalifa even hints that the UK really needs to develop stronger trade relationships with previously untapped markets, focusing on Blockchain, regtech, payments & open banking and remittances.
Another solid rumour to be confirmed is Kalifa’s recommendation to write ten fintech’ Clusters’, or regional hubs, to ensure local fintechs are actually given the support to develop and expand.
Unsurprisingly, London is the only great hub on the summary, which means Kalifa categorises it as a global leader in fintech.
After London, there are three large and established clusters where Kalifa suggests hubs are actually proven, the Pennines (Leeds and Manchester), Scotland, with specific resource to the Edinburgh/Glasgow corridor, along with Birmingham – Fintech News .
While other aspects of the UK have been categorised as emerging or specialist clusters, including Bristol and Bath, Durham and Newcastle, Cambridge, West and Reading of London, Wales (especially Cardiff and South Wales) Northern Ireland.
The Kalifa review suggests nurturing the top 10 regions, making an endeavor to center on the specialities of theirs, while simultaneously enhancing the channels of communication between the other hubs.
Fintech News – UK needs to have a fintech taskforce to protect £11bn industry, says article by Ron Kalifa