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Treasury to Look At Fintech Sector For Growth Opportunities

Posted 3 months ago

Treasury to Look At Fintech Sector For Growth Opportunities
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Owing to the coronavirus pandemic, the Treasury has announced it will be launching an independent review into the fintech sector to identify growth opportunities. The review was originally mentioned in the Chancellor’s March Budget. 

As a result of the economic disruption caused by Covid-19, the review will be chaired by Ron Kalifa OBE and the secretariat will be provided by Innovate Finance and the City of London Corporation. 

The aim of the review is to establish priorities for industry, policy makes and regulators to explore so they can support the growth of the sector. 

According to new research by Norwegian financial services company AksjeBloggen, the global fintech lending industry will be worth a global $291.4bn (£230bn) by the end of 2020, with peer-to-peer business lending representing 70 per cent of that total.

“Tech-based solutions in financial services have experienced wide scale adoption in the UK, with growth fuelled by a favourable start-up environment that supports entrepreneurship and innovation,” said Kalifa. 

“Technology has a vital role to play in the UK’sCovid-19 economic recovery. The fintech review will ensure that we can leverage this innovative technology to help consumers and businesses, through a joined-up strategy that combines investment, skills and policy to deliver it.

“The UK is one of the leading places in the world to start and grow a fintech firm, and I am determined to ensure this continues,” said John Glen, economic secretary to the treasury and city minister.

The sector is worth around £7bn to our economy and will therefore be vital in ensuring both that the country bounces back post-coronavirus, and continues to be at the forefront of financial innovation now we have left the EU.

Charlotte Crosswell, chief executive of Innovate Finance, said the review will underpin the future growth and prosperity of the sector across the whole of the UK. 

Commenting on the launch, CEO of Nextfin, Sacha Bright, said: “While the government is investing heavily in infrastructure, it is worth noting that some of the largest companies in the world are no longer banks or oil producers; they are tech companies, many of whom have invested heavily in the fintech sector.  

“With the UK’s transition period coming to a close, the UK has an opportunity to invest in this sector so that it can remain competitive on the world stage.”

Authors: Sacha Bright & Oliver Murphy

Disclaimer

To the best of our knowledge, the information we have provided is correct at the time of publishing. Sacha Bright is not a solicitor or accountant and we recommend that you seek professional advice on any topic discussed. Nextfin is not liable for any damages arising from the use of or inability to use this site or any material contained in it, or from any action taken as a result of using the site. 

Tagged: sme alternative finance fintech news coronavirus



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