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FCA releases detailed 5-point plan to make UK a fintech powerhouse


A 108-page report particulars how the UK can retain its standing as one of many world facilities for fintech innovation and enterprise.

Upon the announcement of the UK funds for 2020, Chancellor Rishi Sunak commissioned Ron Kalifa to conduct an unbiased evaluate of the U.Okay. fintech sector. On Friday, eight months later, the FCA printed the 108-page report, and it comprises a number of clear pointers geared toward cementing the U.Okay.’s place as a fintech powerhouse.

Over $95 billion was spent by U.Okay. fintech corporations in 2019, and with 10% of the worldwide market share, the U.Okay. is already forward of the curve with regards to fintech adoption and enterprise. Investments in U.Okay. fintech corporations totaled $4.1 billion in 2020, notes the report — greater than the following 5 European international locations mixed.

Kalifa nonetheless recognized areas the place the U.Okay. may enhance its method to making a welcoming setting for the following era of fintech gamers.

“Nonetheless, the trajectory of UK fintech is at an inflection level of alternative — and threat. Whereas the UK’s place is nicely established, its future isn’t assured,” notes the report.

The three foremost threats to the U.Okay.’s present fintech dominance are recognized as COVID-19, Brexit and abroad competitors. Regarding the pandemic, the report notes that the lockdown has accelerated the adoption of digital applied sciences in a approach that coverage and advertising by no means may, and whichever nation involves this realization first stands to learn essentially the most.

With that in thoughts, the report proposes 5 key methods during which the U.Okay. can create an setting extra conducive to fintech within the coming years.

Coverage and Regulation

The report recommends the U.Okay. create a brand new regulatory framework for rising applied sciences and urges it to create a digital finance bundle for this objective. A “scalebox” needs to be created to assist firms targeted on scaling new applied sciences, and a digital enforcement process pressure needs to be shaped to make sure uniformity amongst authorities our bodies, notes the report.

Moreover, the report means that fintech corporations themselves ought to have their voices heard with regards to commerce coverage.


Specializing in the social facet of the inevitable digital transformation, the report recommends that training providers needs to be created to retrain and upskill adults. A pipeline of fintech expertise needs to be shaped to assist fintech scaleups by providing work placements to college students in additional and better training, it provides.


Regarding investments in fintech corporations, the report proposes that current Enterprise Funding Schemes and enterprise capital trusts be expanded, whereas analysis and growth tax credit for fintech corporations needs to be elevated.

The report requires the creation of a 1 billion euro ($718 million) fintech progress fund and recommends {that a} group of fintech indices be constructed to boost world visibility for the business.


The creation of a global motion plan for fintech and the launch of a “Fintech Credential Portfolio” would improve worldwide credibility and make the method of conducting worldwide enterprise simpler usually, the report states.

The report suggests current Centres for Monetary Innovation and Know-how needs to be higher utilized to drive worldwide collaboration, whereas a global fintech process pressure needs to be launched to make sure alignment between taking part international locations.

Nationwide connectivity

Specializing in fintech growth inside the U.Okay.’s personal borders, the report proposes that the highest 10 fintech clusters ought to obtain specific consideration and needs to be nurtured to attain their highest progress potential.

Notable progress clusters have been recognized in Edinburgh, Scotland, the place the variety of fintech corporations has elevated from 26 to 151 in simply over two years with the assistance of enterprise funding. Different notable clusters inside the U.Okay. embrace Cardiff, Wales; and Manchester, Leeds and Birmingham in England.

The report notes that the objective is to not neglect different areas of the nation however to make sure that current fintech hubs can attain their full potential.

Nik Storonsky, co-founder and CEO of London-based fintech agency Revolut, mentioned the Kalifa evaluate may present a pathway to making sure the U.Okay. retains its place among the many high fintech locations on the earth:

“It’s important to protect and strengthen the UK’s place as the primary option to launch and develop a fintech enterprise. I welcome the Kalifa Assessment and the Authorities’s dedication to making sure that the UK stays a world chief in innovation and progress.”

Referencing the U.Okay.’s newfound independence within the wake of the Brexit settlement, Ashok Vaswani, CEO of shopper banking and funds at Barclays, mentioned:

“Because the UK appears to be like to forge its personal path on the earth, it’s completely proper that the Authorities explores the way it can guarantee the continuing success of the UK fintech sector.”