Fintech News – UK needs to have a fintech taskforce to protect £11bn business, says report by Ron Kalifa
The government has been urged to build a high profile taskforce to lead innovation in financial technology during the UK’s progression plans after Brexit.
The body, which might be called the Digital Economy Taskforce, would get together senior figures coming from across government and regulators to co ordinate policy and get rid of blockages.
The suggestion is actually a part of an article by Ron Kalifa, former supervisor of the payments processor Worldpay, that was made by the Treasury found July to come up with ways to create the UK 1 of the world’s top fintech centres.
“Fintech is not a market within financial services,” says the review’s author Ron Kalifa OBE.
Kalifa’s Fintech Review lastly published: Here are the 5 key conclusions Image source: Ron Kalifa OBE/Bank of England.
For weeks rumours have been swirling about what could be in the long-awaited Kalifa assessment into the fintech sector and, for probably the most part, it seems that most were spot on.
According to FintechZoom, the report’s publication will come nearly a year to the day that Rishi Sunak originally said the review in his first budget as Chancellor on the Exchequer found May last year.
Ron Kalifa OBE, a non-executive director of the Court of Directors at the Bank of England and also the vice-chairman of WorldPay, was selected by Sunak to head up the deep 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 suggested developing and adopting common details standards, meaning that incumbent banks’ slower legacy methods just simply won’t be sufficient to get by any longer.
Kalifa has also suggested prioritising Smart Data, with a specific target on receptive banking and also opening upwards more routes of talking between bigger financial institutions and open banking-friendly fintechs.
Open Finance even gets a shout out in the report, with Kalifa telling the government that the adoption of available banking with the intention of reaching open finance is of paramount importance.
As a direct result of their increasing popularity, Kalifa has also recommended tighter regulation for cryptocurrencies and he has also solidified the commitment to meeting ESG objectives.
The report suggests the creating of a fintech task force as well as the improvement of the “technical understanding of fintechs’ business models and markets” will help fintech flourish inside the UK – Fintech News .
Following the success on the FCA’ regulatory sandbox, Kalifa has also suggested a’ scalebox’ which will assist fintech businesses to develop and grow their businesses without the fear of getting on the bad side of the regulator.
To deliver the UK workforce up to date with fintech, Kalifa has suggested retraining employees to satisfy the expanding requirements of the fintech segment, proposing a set of low-cost training classes to do it.
Another rumoured addition to have been integrated in the article is actually an innovative visa route to make sure top tech talent isn’t place off by Brexit, guaranteeing the UK is still a leading international competitor.
Kalifa indicates a’ Fintech Scaleup Stream’ that will give those with the required skills automatic visa qualification and offer assistance for the fintechs hiring top tech talent abroad.
As earlier suspected, Kalifa suggests the governing administration create 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 financial support, with Kalifa mentioning the £6 trillion currently sat in private pension schemes within the UK.
Based on the report, a tiny slice of this pot of cash can be “diverted to high development technology opportunities like fintech.”
Kalifa has also advised expanding R&D tax credits thanks to the popularity of theirs, with 97 per cent of founders having used tax-incentivised investment schemes.
Despite the UK acting as home to several of the world’s most productive fintechs, very few have picked to mailing list on the London Stock Exchange, in fact, the LSE has seen a forty five per cent reduction in the number of listed companies on its platform since 1997. The Kalifa examination sets out steps to change that and makes some recommendations which seem to pre empt the upcoming Treasury-backed assessment into listings led by Lord Hill.
The Kalifa article reads: “IPOs are thriving globally, driven in portion by tech organizations that have become indispensable to both customers and businesses in search of digital tools amid the coronavirus pandemic and it is crucial that the UK seizes this opportunity.”
Under the recommendations laid out in the assessment, free float needs will likely be reduced, meaning businesses no longer have to issue a minimum of 25 per cent of their shares to the general population at every one time, rather they will simply have to give 10 per cent.
The review also suggests using dual share structures which are much more favourable to entrepreneurs, meaning they will be able to maintain control in their companies.
to be able to make certain the UK is still a top international fintech destination, the Kalifa assessment has suggested revising the current Fintech News – “Fintech International Action Plan.”
The review suggests launching an international fintech portal, including a specific introduction of the UK fintech world, contact information for regional regulators, case research studies of previous success stories as well as details about the support and grants available to international companies.
Kalifa also implies that the UK really needs to develop stronger trade interactions with previously untapped markets, concentrating on Blockchain, regtech, payments & remittances and open banking.
Another powerful rumour to be confirmed is actually Kalifa’s recommendation to create ten fintech’ Clusters’, or regional hubs, to guarantee local fintechs are actually offered the assistance to grow and expand.
Unsurprisingly, London is actually the only super hub on the summary, indicating Kalifa categorises it as a worldwide leader in fintech.
After London, there are three large and established clusters wherein Kalifa suggests hubs are demonstrated, the Pennines (Leeds and Manchester), Scotland, with particular 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, including Bath and Bristol, Durham and Newcastle, Cambridge, West and Reading of London, Wales (especially Cardiff and South Wales) Northern Ireland.
The Kalifa review suggests nurturing the top ten regions, making an attempt to focus on the specialities of theirs, while simultaneously enhancing the channels of communication between the other hubs.
Fintech News – UK needs a fintech taskforce to safeguard £11bn industry, says report by Ron Kalifa