Fintech News – UK needs to have a fintech taskforce to safeguard £11bn business, says article by Ron Kalifa
The federal government has been urged to establish a high profile taskforce to lead development in financial technology during the UK’s progression plans after Brexit.
The body, which might be referred to as the Digital Economy Taskforce, would get in concert senior figures coming from across regulators and government to co ordinate policy and get rid of blockages.
The suggestion is part of an article by Ron Kalifa, former boss of your payments processor Worldpay, which was made by the Treasury in July to come up with ways to make the UK 1 of the world’s leading fintech centres.
“Fintech is not a niche within financial services,” states the review’s writer Ron Kalifa OBE.
Kalifa’s Fintech Review finally published: Here are the five key findings Image source: Ron Kalifa OBE/Bank of England.
For weeks rumours are actually swirling concerning what could be in the long awaited Kalifa assessment into the fintech sector as well as, for the most part, it looks like most were spot on.
According to FintechZoom, the report’s publication comes almost a year to the day time that Rishi Sunak first guaranteed the review in his 1st budget as Chancellor of this Exchequer contained May last season.
Ron Kalifa OBE, a non-executive director with the Court of Directors on the Bank of England and the vice chairman of WorldPay, was selected by Sunak to head up the deep plunge 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 requirements, which means that incumbent banks’ slow legacy systems just simply won’t be sufficient to get by any longer.
Kalifa has also recommended prioritising Smart Data, with a specific focus on amenable banking as well as opening up a lot more channels of interaction between bigger financial institutions and open banking-friendly fintechs.
Open Finance actually gets a shout-out in the report, with Kalifa revealing to the federal government that the adoption of open banking with the goal of achieving open finance is of paramount importance.
As a result of their increasing popularity, Kalifa has also recommended tighter regulation for cryptocurrencies and also he’s in addition solidified the commitment to meeting ESG goals.
The report implies the creating of a fintech task force and the improvement of the “technical understanding of fintechs’ markets” and business models will help fintech flourish inside the UK – Fintech News .
Following the achievements of the FCA’ regulatory sandbox, Kalifa has also recommended a’ scalebox’ which will aid fintech firms to grow and grow their operations without the fear of being on the wrong side of the regulator.
To deliver the UK workforce up to speed with fintech, Kalifa has suggested retraining workers to satisfy the increasing needs of the fintech sector, proposing a series of low-cost education classes to do so.
Another rumoured add-on to have been included in the report is actually an innovative visa route to make sure top tech talent is not put off by Brexit, assuring the UK is still a top international competitor.
Kalifa suggests a’ Fintech Scaleup Stream’ that will provide those with the required skills automatic visa qualification and also offer support for the fintechs hiring high tech talent abroad.
As earlier suspected, Kalifa implies the government produce a £1bn Fintech Growth Fund to help homegrown firms scale and grow.
The report implies that a UK’s pension growing pots could be a great source for fintech’s funding, with Kalifa pointing out the £6 trillion currently sat in private pension schemes within the UK.
As per the report, a small slice of this pot of cash could be “diverted to high progress technology opportunities as fintech.”
Kalifa in addition has suggested expanding R&D tax credits because of the popularity of theirs, with 97 per cent of founders having utilized tax incentivised investment schemes.
Despite the UK being house to several of the world’s most productive fintechs, few have picked to subscriber list on the London Stock Exchange, for truth, the LSE has seen a 45 per cent reduction in the selection of companies which are listed on its platform since 1997. The Kalifa examination sets out measures to change that as well as makes some suggestions that appear to pre empt the upcoming Treasury-backed assessment directly into listings led by Lord Hill.
The Kalifa article reads: “IPOs are actually thriving worldwide, driven in section by tech companies that have become vital to both buyers and businesses in search of digital tools amid the coronavirus pandemic plus it is critical that the UK seizes this opportunity.”
Under the recommendations laid out in the review, free float requirements will likely be reduced, meaning businesses no longer have to issue at least 25 per cent of the shares to the general public at any one time, rather they will just have to offer 10 per cent.
The evaluation also suggests using dual share structures which are a lot more favourable to entrepreneurs, indicating they will be able to maintain control in their companies.
In order to make sure the UK continues to be a best international fintech end point, the Kalifa assessment has advised revising the current Fintech News – “Fintech International Action Plan.”
The review suggests launching an international fintech portal, including a clear introduction of the UK fintech arena, contact information for regional regulators, case studies of previous success stories as well as details about the help and grants available to international companies.
Kalifa also implies that the UK needs to develop stronger trade interactions with previously untapped markets, focusing on Blockchain, regtech, payments & open banking and remittances.
Another powerful rumour to be established is Kalifa’s recommendation to write 10 fintech’ Clusters’, or maybe regional hubs, to ensure local fintechs are provided the support to develop and expand.
Unsurprisingly, London is the only great hub on the list, meaning Kalifa categorises it as a global leader in fintech.
After London, there are 3 large as well as established clusters where Kalifa suggests hubs are proven, the Pennines (Manchester and Leeds), Scotland, with specific resource to the Edinburgh/Glasgow corridor, as well as Birmingham – Fintech News .
While other aspects of the UK have been categorised as emerging or perhaps specialist clusters, like Bath and Bristol, Durham and Newcastle, Cambridge, Reading and West of London, Wales (especially Cardiff along with South Wales) Northern Ireland.
The Kalifa review suggests nurturing the top 10 regions, making an endeavor to focus on their specialities, while also enhancing the channels of interaction between the other hubs.
Fintech News – UK must have a fintech taskforce to protect £11bn business, says report by Ron Kalifa