Fintech News – UK should have a fintech taskforce to safeguard £11bn industry, says article by Ron Kalifa
The government has been urged to grow a high-profile taskforce to lead development in financial technology as part of the UK’s progress 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 government and regulators to co-ordinate policy and clear away blockages.
The suggestion is part of an article by Ron Kalifa, former supervisor on the payments processor Worldpay, who was asked by the Treasury in July to think of ways to make the UK 1 of the world’s reputable fintech centres.
“Fintech is not a market within financial services,” says 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 regarding 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 season to the day that Rishi Sunak initially said the review in his 1st budget as Chancellor of the Exchequer contained May last year.
Ron Kalifa OBE, a non executive director with the Court of Directors at the Bank of England and the vice chairman of WorldPay, was selected by Sunak to head upwards the significant jump into fintech.
Here are the reports 5 important recommendations to the Government:
Regulation and policy
In a move that has to be music to fintech’s ears, Kalifa has proposed developing as well as adopting common data standards, meaning that incumbent banks’ slower legacy methods just simply won’t be enough to get by anymore.
Kalifa in addition has suggested prioritising Smart Data, with a certain target on amenable banking and opening upwards a lot more routes of communication between open banking-friendly fintechs and bigger financial institutions.
Open Finance even gets a shout-out in the article, with Kalifa informing the government that the adoption of open banking with the aim of attaining open finance is of paramount importance.
As a consequence of their growing popularity, Kalifa has also advised tighter regulation for cryptocurrencies and also he’s also solidified the commitment to meeting ESG objectives.
The report seems to indicate the construction of a fintech task force together with the improvement of the “technical comprehension of fintechs’ markets” and business models will help fintech flourish in the UK – Fintech News .
Watching the good results on the FCA’ regulatory sandbox, Kalifa has additionally recommended a’ scalebox’ that will help fintech companies to develop and grow their operations without the fear of being on the bad aspect of the regulator.
In order to bring the UK workforce up to speed with fintech, Kalifa has recommended retraining employees to meet the expanding needs of the fintech segment, proposing a set of low-cost education classes to do so.
Another rumoured add-on to have been integrated in the article is a brand new visa route to make sure top tech talent is not place off by Brexit, promising the UK remains a leading international competitor.
Kalifa indicates a’ Fintech Scaleup Stream’ that will give those with the needed skills automatic visa qualification as well as offer assistance for the fintechs choosing high tech talent abroad.
As earlier suspected, Kalifa implies the government create a £1bn Fintech Growth Fund to assist homegrown firms scale and grow.
The report suggests that a UK’s pension planting containers may just be a great method for fintech’s financial backing, with Kalifa mentioning the £6 trillion currently sat in private pension schemes within the UK.
According to the report, a tiny slice of this particular pot of money can be “diverted to high progress technology opportunities as fintech.”
Kalifa has additionally suggested expanding R&D tax credits because of their popularity, with ninety seven per cent of founders having expended tax incentivised investment schemes.
Despite the UK being home to several of the world’s most productive fintechs, very few have picked to list on the London Stock Exchange, in reality, the LSE has seen a forty five per cent decrease in the selection of listed companies on its platform after 1997. The Kalifa evaluation sets out measures to change that and makes several recommendations that appear to pre-empt the upcoming Treasury-backed review directly into listings led by Lord Hill.
The Kalifa article reads: “IPOs are thriving worldwide, driven in portion by tech companies that have become essential to both consumers and businesses in search of digital tools amid the coronavirus pandemic plus it is important that the UK seizes this particular opportunity.”
Under the strategies laid out in the assessment, free float requirements will likely be reduced, meaning businesses don’t have to issue at least twenty five per cent of the shares to the general public at any one time, rather they will just have to offer ten per cent.
The examination also suggests using dual share structures that are a lot more favourable to entrepreneurs, meaning they are going to be in a position to maintain control in their companies.
In order to ensure the UK continues to be a top international fintech desired destination, the Kalifa review has recommended revising the current Fintech News – “Fintech International Action Plan.”
The review suggests launching a worldwide fintech portal, including a clear introduction of the UK fintech scene, contact info for regional regulators, case research studies of previous success stories as well as details about the support and grants available to international companies.
Kalifa even implies that the UK really needs to build stronger trade interactions with before untapped markets, focusing on Blockchain, regtech, payments and remittances and open banking.
Another solid rumour to be established is actually Kalifa’s recommendation to create ten fintech’ Clusters’, or perhaps regional hubs, to guarantee local fintechs are offered the support to grow and expand.
Unsurprisingly, London is actually the only great hub on the list, indicating Kalifa categorises it as a worldwide leader in fintech.
After London, there are actually 3 large and established clusters in which Kalifa recommends hubs are actually established, 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 maybe specialist clusters, like Bath and Bristol, Newcastle and Durham, 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 effort to focus on the specialities of theirs, while at the same enhancing the channels of interaction between the various other hubs.
Fintech News – UK needs to have a fintech taskforce to safeguard £11bn industry, says article by Ron Kalifa