Fintech News – UK needs a fintech taskforce to protect £11bn business, says article by Ron Kalifa
The federal government has been urged to establish a high-profile taskforce to guide innovation in financial technology during the UK’s progress plans after Brexit.
The body, which could be known as the Digital Economy Taskforce, would draw in concert senior figures from across government and regulators to co ordinate policy and eliminate blockages.
The recommendation is a component of an article by Ron Kalifa, former employer of the payments processor Worldpay, who was directed with the Treasury found July to come up with ways to create the UK 1 of the world’s reputable fintech centres.
“Fintech is not a market within financial services,” states the review’s author Ron Kalifa OBE.
Kalifa’s Fintech Review finally published: Here are the 5 key findings Image source: Ron Kalifa OBE/Bank of England.
For weeks rumours have been swirling regarding what might be in the long awaited Kalifa review into the fintech sector and, for probably the most part, it seems that most were spot on.
According to FintechZoom, the report’s publication will come nearly a year to the day that Rishi Sunak initially promised the review in his 1st budget as Chancellor of this Exchequer found May last season.
Ron Kalifa OBE, a non-executive director with the Court of Directors at the Bank of England and the vice-chairman of WorldPay, was selected by Sunak to head upwards the significant plunge into fintech.
Here are the reports five key recommendations to the Government:
Regulation and policy
In a move that must be music to fintech’s ears, Kalifa has suggested developing and adopting typical data standards, meaning that incumbent banks’ slower legacy systems just simply won’t be sufficient to get by any longer.
Kalifa has also suggested prioritising Smart Data, with a certain concentrate on open banking and also opening upwards a great deal more channels of communication between bigger financial institutions and open banking-friendly fintechs.
Open Finance also gets a shout out in the report, with Kalifa telling the federal government that the adoption of available banking with the intention of reaching open finance is of paramount importance.
As a direct result of their growing popularity, Kalifa has also advised tighter regulation for cryptocurrencies as well as he has in addition solidified the dedication to meeting ESG goals.
The report implies the construction of a fintech task force together with the improvement of the “technical awareness of fintechs’ markets” and business models will help fintech flourish with the UK – Fintech News .
Following the good results on the FCA’ regulatory sandbox, Kalifa has also recommended a’ scalebox’ that will help fintech businesses to develop and grow their businesses without the fear of getting on the wrong aspect of the regulator.
So as to get the UK workforce up to speed with fintech, Kalifa has recommended retraining workers to satisfy the expanding requirements of the fintech sector, proposing a set of low-cost education programs to do it.
Another rumoured addition to have been included in the article is actually the latest visa route to ensure top tech talent isn’t put off by Brexit, promising the UK continues to be a top international competitor.
Kalifa indicates a’ Fintech Scaleup Stream’ which will give those with the required skills automatic visa qualification as well as offer support for the fintechs hiring high tech talent abroad.
As previously suspected, Kalifa implies the governing administration produce a £1bn Fintech Growth Fund to assist homegrown firms scale and grow.
The report implies that the UK’s pension planting containers could be a great source for fintech’s financial backing, with Kalifa pointing out the £6 trillion now sat in private pension schemes within the UK.
According to the report, a tiny slice of this particular pot of money may be “diverted to high expansion technology opportunities as fintech.”
Kalifa in addition has suggested expanding R&D tax credits thanks to their popularity, with ninety seven per dollar of founders having expended tax incentivised investment schemes.
Despite the UK being house to some of the world’s most productive fintechs, few have chosen to list on the London Stock Exchange, in truth, the LSE has seen a forty five per cent reduction in the selection of companies that are listed on its platform after 1997. The Kalifa review sets out measures to change that and makes several recommendations that seem to pre empt the upcoming Treasury backed review into listings led by Lord Hill.
The Kalifa article reads: “IPOs are thriving globally, driven in part by tech companies that will have become vital to both consumers and businesses in search of digital resources amid the coronavirus pandemic plus it’s essential that the UK seizes this opportunity.”
Under the recommendations laid out in the assessment, free float requirements will be reduced, meaning businesses don’t have to issue a minimum of 25 per cent of the shares to the general population at any one time, rather they’ll just need to provide ten per cent.
The review also suggests using dual share components which are more favourable to entrepreneurs, indicating they will be able to maintain control in their companies.
To make sure the UK is still a top international fintech end point, the Kalifa assessment has suggested revising the current Fintech News – “Fintech International Action Plan.”
The review suggests launching a worldwide fintech portal, including a clear introduction of the UK fintech arena, contact info for localized regulators, case studies of previous success stories as well as details about the support and grants readily available to international companies.
Kalifa even hints that the UK really needs to create stronger trade connections with previously untapped markets, concentrating on Blockchain, regtech, payments & remittances and open banking.
Another solid rumour to be confirmed is Kalifa’s recommendation to craft 10 fintech’ Clusters’, or perhaps regional hubs, to guarantee local fintechs are given the support to develop and expand.
Unsurprisingly, London is the only great hub on the listing, meaning Kalifa categorises it as a worldwide leader in fintech.
After London, there are three large as well as established clusters in which Kalifa recommends hubs are established, the Pennines (Manchester and Leeds), Scotland, with specific resource to the Edinburgh/Glasgow corridor, and Birmingham – Fintech News .
While other facets of the UK have been categorised as emerging or maybe specialist clusters, including Bristol and Bath, Newcastle and Durham, Cambridge, Reading and West of London, Wales (especially Cardiff along with South Wales) Northern Ireland.
The Kalifa review indicates nurturing the top ten regions, making an effort to focus on their specialities, while at the same enhancing the channels of communication between the other hubs.
Fintech News – UK needs to have a fintech taskforce to shield £11bn industry, says report by Ron Kalifa