Fintech News – UK needs a fintech taskforce to protect £11bn business, says article by Ron Kalifa
The government has been urged to build a high-profile taskforce to lead innovation in financial technology together with the UK’s progress plans after Brexit.
The body, which might be known as the Digital Economy Taskforce, would draw together senior figures coming from across regulators and government to co ordinate policy and clear away blockages.
The suggestion is part of a report by Ron Kalifa, former supervisor on the payments processor Worldpay, that was directed with the Treasury found July to think of ways to create the UK 1 of the world’s top fintech centres.
“Fintech isn’t a market within financial services,” says the review’s author Ron Kalifa OBE.
Kalifa’s Fintech Review finally published: Here are the 5 key conclusions Image source: Ron Kalifa OBE/Bank of England.
For weeks rumours have been swirling concerning what can be in the long-awaited Kalifa assessment into the fintech sector and also, for the most part, it appears that most were area on.
According to FintechZoom, the report’s publication will come almost a season to the day time that Rishi Sunak initially guaranteed the review in his first budget as Chancellor of the Exchequer contained May last season.
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 dive into fintech.
Allow me to share the reports five important recommendations to the Government:
Regulation and policy
In a move that must be music to fintech’s ears, Kalifa has proposed developing and adopting typical details standards, meaning that incumbent banks’ slower legacy methods just simply will not be enough to get by any longer.
Kalifa has additionally advised prioritising Smart Data, with a specific concentrate on amenable banking and also opening upwards more routes of communication between bigger financial institutions and open banking-friendly fintechs.
Open Finance even gets a shout out in the article, with Kalifa informing the federal government that the adoption of open banking with the intention of achieving open finance is of paramount importance.
As a consequence of their growing popularity, Kalifa has additionally suggested tighter regulation for cryptocurrencies and he has additionally solidified the dedication to meeting ESG objectives.
The report seems to indicate the construction of a fintech task force and the improvement of the “technical awareness of fintechs’ markets” and business models will help fintech flourish in the UK – Fintech News .
Watching the achievements on the FCA’ regulatory sandbox, Kalifa has also recommended a’ scalebox’ which will aid fintech businesses to grow and expand their businesses without the fear of being on the wrong side of the regulator.
To bring the UK workforce up to speed with fintech, Kalifa has suggested retraining employees to cover the expanding requirements of the fintech sector, proposing a set of low-cost training courses to do so.
Another rumoured addition to have been incorporated in the article is actually the latest visa route to make sure top tech talent is not put off by Brexit, promising the UK continues to be a best international competitor.
Kalifa indicates a’ Fintech Scaleup Stream’ which will supply those with the required skills automatic visa qualification and also offer assistance for the fintechs choosing high tech talent abroad.
As earlier suspected, Kalifa indicates the governing administration produce a £1bn Fintech Growth Fund to help homegrown firms scale and expand.
The report indicates that the UK’s pension growing pots could be a great source for fintech’s financial backing, with Kalifa mentioning the £6 trillion currently sat in private pension schemes inside the UK.
According to the report, a small slice of this particular container of cash can be “diverted to high growth technology opportunities as fintech.”
Kalifa has also recommended expanding R&D tax credits thanks to the popularity of theirs, with 97 per cent of founders having expended tax-incentivised investment schemes.
Despite the UK acting as home to several of the world’s most successful fintechs, few have picked to mailing list on the London Stock Exchange, in fact, the LSE has observed a forty five per cent reduction in the selection of companies that are listed on its platform since 1997. The Kalifa review sets out steps to change that and also makes some recommendations which appear to pre empt the upcoming Treasury-backed review into listings led by Lord Hill.
The Kalifa article reads: “IPOs are thriving worldwide, driven in part by tech companies that have become indispensable to both customers and companies in search of digital resources amid the coronavirus pandemic plus it is important that the UK seizes this particular opportunity.”
Under the recommendations laid out in the review, free float requirements will likely be reduced, meaning companies no longer have to issue a minimum of twenty five per cent of the shares to the public at almost any one time, rather they will just have to offer 10 per cent.
The review also suggests implementing dual share constructs that are more favourable to entrepreneurs, indicating they will be able to maintain control in their companies.
To ensure the UK is still a top international fintech destination, the Kalifa review has suggested revising the current Fintech News – “Fintech International Action Plan.”
The review suggests launching an international fintech portal, including a specific overview of the UK fintech scene, contact info for localized regulators, case scientific studies of previous success stories as well as details about the help and support and grants readily available to international companies.
Kalifa even suggests that the UK really needs to develop stronger trade connections with before untapped markets, concentrating on Blockchain, regtech, payments and remittances and open banking.
Another strong rumour to be established is actually Kalifa’s recommendation to write ten fintech’ Clusters’, or perhaps regional hubs, to ensure local fintechs are offered the support to develop and grow.
Unsurprisingly, London is the only great hub on the listing, which means Kalifa categorises it as a worldwide leader in fintech.
After London, there are 3 large and established clusters where Kalifa recommends hubs are proven, the Pennines (Manchester and Leeds), Scotland, with particular guide to the Edinburgh/Glasgow corridor, as well as Birmingham – Fintech News .
While other areas of the UK have been categorised as emerging or specialist clusters, including Bath and Bristol, Durham and Newcastle, Cambridge, Reading and West of London, Wales (especially Cardiff and South Wales) Northern Ireland.
The Kalifa review suggests nurturing the top ten regions, making an endeavor to focus on their specialities, while simultaneously enhancing the channels of interaction between the various other hubs.
Fintech News – UK should have a fintech taskforce to safeguard £11bn business, says article by Ron Kalifa