The Fintech Sector Strategy (PDF) is ‘all about the action the government has taken to make the UK the best place to start and grow a fintech business’. If you do not have half an hour spare to read the report, this UK Tech News article is a good summary.
- More people work in UK fintech than in New York fintech or in the combined fintech workforce of Singapore, Hong Kong and Japan.
- Over 42% of digitally active adults now use the services of at least one fintech firm.
- More than 20 million people in the UK make use of banking apps.
Most articles focus on the creation of a new ‘crypto asset task force’, which does sound a lot like another one of those viral games that might break the Ethereum network. The task force is actually part of a concerted effort to lessen regulatory headaches. Another part of the report focuses on regtech and how compliance obligations can be converted to a machine-readable format.
One of the more widely relevant (and eagerly anticipated) announcements is that the UK is building a ‘Fintech bridge’ with Australia.
This would be the fifth bridge, since the UK already has one with Hong Kong, South Korea, Singapore and China. The report says it will ‘minimise barriers to entry for fintech firms that wish to expand globally, and . . .] ensure that the growth potential of UK fintechs is showcased to international investors’.
What that means in practice:
- The FCA and the Australian equivalent (ASIC) work together. They will share information about emerging trends or regulatory issues etc.
- The governments will harmonise a range of policies relevant to fintech. A prime example is in their Open Banking regimes.
- Streamlining the process for fintechs trying to expand internationally
- There will be plenty of collaborations in the private sector too; events, conferences, networking and so on.