Fintech News – UK needs a fintech taskforce to safeguard £11bn industry, says report by Ron Kalifa
The government has been urged to grow a high-profile taskforce to guide development in financial technology as part of the UK’s progression plans after Brexit.
The body, which could be known as the Digital Economy Taskforce, would get in concert senior figures as a result of across regulators and government to co ordinate policy and take off blockages.
The recommendation is a part of an article by Ron Kalifa, former supervisor of your payments processor Worldpay, that was directed by the Treasury contained July to think of ways to create the UK 1 of the world’s leading fintech centres.
“Fintech is not a niche market within financial services,” states the review’s writer Ron Kalifa OBE.
Kalifa’s Fintech Review finally published: Here are the 5 key results Image source: Ron Kalifa OBE/Bank of England.
For weeks rumours have been swirling concerning what might be in the long awaited Kalifa review into the fintech sector as well as, for probably the most part, it appears that most were spot on.
According to FintechZoom, the report’s publication arrives close to a year to the morning that Rishi Sunak first guaranteed the review in his first budget as Chancellor of the Exchequer found May last year.
Ron Kalifa OBE, a non-executive director belonging to the Court of Directors on the Bank of England and the vice-chairman of WorldPay, was selected by Sunak to head up the significant plunge into fintech.
Allow me to share the reports five key recommendations to the Government:
Regulation and policy
In a move that must be music to fintech’s ears, Kalifa has proposed developing as well as adopting common details standards, which means that incumbent banks’ slow legacy systems just simply will not be sufficient to get by anymore.
Kalifa has also suggested prioritising Smart Data, with a specific target on open banking and opening upwards more channels of interaction between bigger financial institutions and open banking-friendly fintechs.
Open Finance also gets a shout out in the report, with Kalifa revealing to the authorities that the adoption of open banking with the intention of achieving open finance is actually of paramount importance.
As a consequence of their growing popularity, Kalifa has additionally recommended tighter regulation for cryptocurrencies as well as he has additionally solidified the commitment to meeting ESG objectives.
The report implies the construction of a fintech task force together with the improvement of the “technical awareness of fintechs’ business models and markets” will help fintech flourish in the UK – Fintech News .
Watching the achievements of the FCA’ regulatory sandbox, Kalifa has additionally suggested a’ scalebox’ that will help fintech companies to develop and grow their operations without the fear of getting on the wrong aspect of the regulator.
In order to bring the UK workforce up to speed with fintech, Kalifa has recommended retraining workers to meet the increasing requirements of the fintech sector, proposing a series of inexpensive training courses to do so.
Another rumoured add-on to have been included in the article is a new visa route to make sure top tech talent is not place off by Brexit, guaranteeing the UK remains a top international competitor.
Kalifa suggests a’ Fintech Scaleup Stream’ that will offer those with the needed skills automatic visa qualification and offer guidance for the fintechs hiring high tech talent abroad.
As previously suspected, Kalifa suggests the government produce a £1bn Fintech Growth Fund to help homegrown firms scale and grow.
The report implies that this UK’s pension pots could be a great source for fintech’s funding, with Kalifa mentioning the £6 trillion currently sat within private pension schemes in the UK.
Based on the report, a tiny slice of this container of cash may be “diverted to high growth technology opportunities as fintech.”
Kalifa has also advised expanding R&D tax credits because of their popularity, with ninety seven per dollar of founders having used tax incentivised investment schemes.
Despite the UK becoming a house to several of the world’s most successful fintechs, very few have selected to list on the London Stock Exchange, for fact, the LSE has observed a 45 per cent reduction in the number of companies which are listed on its platform since 1997. The Kalifa evaluation sets out measures to change that and also makes some suggestions that appear to pre-empt the upcoming Treasury backed review straight into listings led by Lord Hill.
The Kalifa report reads: “IPOs are actually thriving worldwide, driven in part by tech companies that have become vital to both consumers and businesses in search of digital tools amid the coronavirus pandemic plus it’s important that the UK seizes this particular opportunity.”
Under the suggestions laid out in the review, free float requirements will likely be reduced, meaning companies don’t have to issue at least 25 per cent of their shares to the general public at any one time, rather they will simply have to provide 10 per cent.
The examination also suggests implementing dual share components that are a lot more favourable to entrepreneurs, meaning they are going to be able to maintain control in the companies of theirs.
to be able to ensure the UK is still a top international fintech desired destination, the Kalifa review has recommended revising the present Fintech News – “Fintech International Action Plan.”
The review suggests launching an international fintech portal, including a clear introduction of the UK fintech arena, contact info for regional regulators, case scientific studies of previous success stories and details about the support and grants available to international companies.
Kalifa even suggests that the UK needs to build stronger trade connections with previously untapped markets, concentrating on Blockchain, regtech, payments & remittances and open banking.
Another powerful rumour to be confirmed is Kalifa’s recommendation to create 10 fintech’ Clusters’, or maybe regional hubs, to ensure local fintechs are actually given the assistance to grow and expand.
Unsurprisingly, London is actually the only super hub on the list, indicating Kalifa categorises it as a global leader in fintech.
After London, there are 3 big as well as established clusters where Kalifa suggests hubs are actually proven, the Pennines (Leeds and Manchester), Scotland, with specific reference 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, like Bristol and Bath, Newcastle and Durham, Cambridge, West and Reading of London, Wales (especially Cardiff along with South Wales) Northern Ireland.
The Kalifa review indicates nurturing the top ten regions, making an effort to center on the specialities of theirs, while also enhancing the channels of interaction between the other hubs.
Fintech News – UK should have a fintech taskforce to protect £11bn business, says report by Ron Kalifa