- Chancellor visited Leeds – the second largest financial
services centre into the UK - to launch new Scale-up Unit for
high potential firms.
- Expert and bespoke support delivered by the new Scale-up Unit
will help banks, insurers and fintech firms expand faster, create
well paid jobs and attract investment.
Financial services firms will get new support to help them scale
up, invest and create high-skilled jobs – as the Chancellor
doubles down on growth as her top priority by making it easier
for innovative businesses to grow.
Speaking at a conference of regulators and business leaders in
Leeds to boost regional growth today (24 October), announced that scaling banks
and insurers will be given bespoke support to navigate rules and
regulation – tearing down a key barrier to them growing and
investing as part of the government's modern Industrial
Strategy.
The new unit, which will also work with other scaling financial
services firms like fintechs from early next year, will give
businesses a clear point of contact with the Financial Conduct
Authority and Prudential Regulation Authority. This will make it
simpler for firms to get timely responses to regulatory queries
and access expert support – so that entrepreneurs can focus on
developing new products, hiring staff, and bringing investment
into local economies.
Chancellor of the Exchequer, said:
I am proud to be back in Leeds, home to the second largest
financial services centre in the UK, to launch our new Scale-up
Unit – which will super charge the growth of some of our most
innovative companies.
But the vast number of rules make life complicated for these
businesses. We are helping them cut through the noise, to grow
and innovate. That's how we will boost jobs, boost growth, and
build an economy that works for, and rewards, working people.
Hiroki Takeuchi, CEO of GoCardless – who recently opened
a new office in Leeds for their ‘Northern Hub' - said:
The Chancellor's commitment to the growth of financial services
in Leeds and across Yorkshire is hugely welcome.
Accessing clear regulatory guidance is a key hurdle for fintechs
bringing new innovations to market. Streamlining the
process will make it easier for firms like GoCardless to
concentrate on serving customers and accelerating our growth
plans, including our new ‘Northern Hub' office in Leeds.
The announcements build on the government's wider work to
strengthen the UK's position as a global hub for financial
services and technology, including unlocking more private
investment through the Mansion House Reforms and supporting
growth in every region through the Leeds Reforms.
These changes are already driving more investment into the UK,
with over £110 billion committed by global financial services
companies in the last month. This includes global Fintech leader
Revolut opening its new headquarters in Canary Wharf, as part of
a £3 billion investment over the next five years that will create
1,000 jobs.
, Chief Executive of the
Financial Conduct Authority said:
We've committed in our strategy to supporting growth and ensuring
the UK remains the premier destination for financial firms to
start up and grow. By joining up with the PRA, our new Scale-up
Unit will provide firms with tailored, hands-on support to help
them scale and grow faster.
Sam Woods, CEO of the Prudential Regulation Authority,
said:
In line with our objective to facilitate UK growth and
competitiveness, this new unit will encourage a dynamic,
competitive landscape in financial services by offering tailored
support to firms on how to navigate regulation while scaling up.
More information
- The Scale-up Unit will be jointly led by the Financial
Conduct Authority (FCA) and Prudential Regulation Authority
(PRA).
- The service will open initially for fast-growing
deposit-takers and insurers, before expanding to serve other
financial services firms including fintechs next year.
- The Unit will provide dedicated resource for fast-growing
firms seeking support as they expand.
- The Sprint event will bring together industry, investors and
regulators to identify and address barriers to scaling innovative
and regulated financial firms in regions across the UK.
- FinTech firms widely cite navigating regulation as a key
barrier to scaling which can inhibit investment into growing
firms. The Unit will help give firms the regulatory clarity they
need to support their scaling ambitions and help unlock the
investment needed to plug the £2 billion FinTech scale-up funding
gap which was cited in Sir Ron Kalifa's 2021 Review of the
Fintech sector.
- To help further tackle this funding gap, the government also
welcomed as part of the Financial Services Growth and
Competitiveness Strategy work from the City of London Corporation
and the British Business Bank to facilitate greater access to
finance and commercial opportunities for fast-growing Fintech
firms.
- The UK is home to more than 3,000 fintech firms, employing
over 75,000 people nationwide, and attracting over $3.6 billion
in investment in 2024 alone.
- Both initiatives form part of the government's Plan for
Change – going further and faster to grow the economy, create
good jobs and put more money in people's pockets.
