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independent review led by Ron Kalifa sets out strategy
to put UK at the top of the global fintech league table
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recommendations include a new fintech scale-up visa
stream, a ‘scale box’ for growing firms and changes to
UK listings rules
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support for sector will create jobs and deliver better
outcomes for people and businesses across the UK
The UK has more than 10 per cent of the global market share
in fintech and the sector is now worth more than £11
billion a year to the UK economy.
The independent review, led by Ron Kalifa OBE, finds the UK
is at a pivotal moment and presents a wide-ranging strategy
and delivery model to build on its existing attractiveness
to start-ups firms and become the best place for a fintech
business to reach global scale.
It marks an important step in the Chancellor Rishi Sunak’s
plan to make the UK the most open and dynamic place in the
world to operate a financial services business. The
government will now examine the recommendations and respond
in due course.
The review highlights the opportunity to create highly
skilled jobs across the UK, boost trade and extend a
competitive edge over other leading fintech hubs.
Recommendations include:
- introducing a new ‘fintech scale up’ visa route for
specialists from around the world
- implementing a ‘scale box’ to provide regulatory
support for growing firms
- improving UK listings rules with free float reduction
and dual class shares
- creating a £1 billion-pound fintech ‘growth fund’ to
help firms grow independently
- establishing a private sector-led Centre for Finance,
Innovation and Technology to support national coordination
and growth in fintech across the UK
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Chancellor of the Exchequer, said:
Fintech is one of the UK’s great success stories and will
help us seize new opportunities around the world.
We must now build on our global reputation for fostering
innovative start-ups and ensure firms can access the
talent, finance and support they need to scale up here in
the UK.
This review will make an important contribution to our
plan to retain the UK’s fintech crown, create more
skilled jobs, and deliver better financial services for
people and businesses.
Ron Kalifa OBE said:
Fintech has the power to change lives, both in terms of
job creation and better wages that are so essential to
our recovery; and making financial services more
accessible and relevant to people’s lives.
Britain has a proud record of starting-up and scaling-up
some of the best known fintech products, but we cannot
rest on our laurels. The next powerhouses will not be
created by accident.
We must continue to nurture our start-up culture, but
crucially we must also give our high growth firms the
support to become global giants.
With the right reforms that encourage entrepreneurialism,
investment and make it easy to attract and invest in
talent, Britain can usher in a period of dominance that
can help us build back better from Covid-19.
- The independent
review’s full report can be read here.
- In 2020, investment into UK fintech stood at $4.1
billion in 2020 – more than the next 4 European countries
combined.
- The strategic review produces a five-point plan to help
mitigate risks and take advantage of the opportunities in
the global economy:
- Policy and Regulation – dynamic leadership that
protects consumers yet enables fintech activity and
encourages competition
- Skills – ensuring fintech has the right supply of
domestic and international talent and the means to train
and upskill our current and future workforce
- Investment – completing the funding ladder from
start-ups right through to IPO
- International – a targeted approach to exports and
inward investment
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National connectivity – leveraging the output of
fintechs across the UK and facilitating connectivity
amongst them.
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The Review secretariat was provided by Innovate Finance
and City of London Corporation.
- Catherine McGuinness, Policy Chair of the City of
London Corporation:
This is a pivotal moment for the UK. There are
significant opportunities offered by fintech – an area in
which London already has unmatched global appeal. But for
the UK to retain its position as world leader and
continue to attract investment into the sector, it is
vital to offer an environment which supports innovation.
The Kalifa review offers a roadmap to achieving this. We
welcome the review’s recommendations, including its call
to maintain access to the global talent that is so
essential to fintech’s success in the UK, and urge
government to support its recommendations and help
turbocharge this vibrant sector.
- Innovate Finance’s CEO Charlotte Crosswell, said:
Innovate Finance welcomes the timely contribution of the
Kalifa Review. This is a vital intervention that has the
potential to set the strategic direction of UK fintech
for decades to come. The sector has seen incredible
growth, and fintech firms across the UK are ambitious in
building, developing and scaling their businesses. The
way that consumers and businesses are interfacing with
financial services is rapidly evolving. We must respond
to this changing dynamic and ensure we look to the
fintech sector to advance these solutions. This will
result in the creation of new digital jobs, inspire a
next generation of entrepreneurs, and in turn enable the
growth of global champions. The UK attracts the founders
behind some of the world’s most innovative businesses, so
we must show that we remain an ambitious partner in a
sector where we have been at the forefront of global
thought leadership. We look forward to supporting the
implementation of Ron Kalifa’s recommendations and
strategy over the coming months.
I founded Checkout.com in the UK a decade ago because of
its forward-thinking approach to financial technology.
Since then, our business has grown to become the UK’s
largest fintech, employing 1000 people globally, and
powering market-leading eCommerce brands and fintechs the
world over. The Fintech Strategic Review sets out a clear
vision to keep the UK at the forefront of global fintech,
and support the recovery by embracing the digital
economy.
- Kristo Käärmann, Wise CEO:
It’s great to see the Treasury seeking to support and
improve the UK’s position on the world stage as a growth
platform for tech companies in financial services. This
review, conducted by Ron Kalifa, is a brilliant
opportunity to keep modernising the regulatory
environment. This should lead to even more competitive
products and better services for consumers, both here in
the UK and beyond the borders.
At Monzo, we are proud to be part of an industry that is
always working to change finance for the better and give
consumers more options. It is why we are supportive of
these recommendations which would help the next
generation of financial technology companies get off the
ground, while enabling established companies, like Monzo,
to take it to the next level.
- Lisa Jacobs, Funding Circle Europe Managing Director:
The pandemic has accelerated the adoption of online
lending and shown how critical FinTech lenders are in
supporting SMEs. We believe this shift is permanent, and
the sector will have a vital role to play in the UK’s
national recovery. We welcome this timely and important
strategic review, and look forward to working with Ron
Kalifa, and HM Treasury to ensure UK fintech continues to
transform the customer experience.
