The Chancellor, Rishi Sunak, has set out a series of plans to push the UKs level of competition in the Fintech sector. Announcing regulatory support to help firms expand alongside a new taskforce, to look at digital currencies. The announcements come after the release of the recent ‘Khalifa Review of UK Fintech’.
In an effort to support UK firms in the Fintech sector, the Financial Conduct Authority have taken forward plans for a ‘scale box’, meaning a package of measures to enhance its pioneering regulatory sandbox, which has been invaluable for allowing start-ups to test new propositions, and to provide a one-stop shop for growth stage firms.
The Chancellor also backed the creation of an industry-led Centre for Finance, Innovation and Technology (CFIT) and committed to work with regional and national fintech bodies to make it a reality. The CFIT would work closely with the regional hubs to identify and address sector challenges in support of fintech growth across the UK.
All of the announcements are keeping in mind the UKs green commitments and will make sure that the financial sector continues to be ‘greener’ as the government looks to fulfil its net-zero carbon pledge.
The treasury will be looking at the benefits of creating a Central Bank digital currency, and two news forums will be put into effect to engage key stakeholders to assess the benefits.
Rishi Sunak said ‘’Our vision is for a more open, greener, and more technologically advanced financial services sector. The UK is already known for being at the forefront of innovation, but we need to go further. The steps I’ve outlined today, to boost growing fintechs, push the boundaries of digital finance and make our financial markets more efficient, will propel us forward. And if we can capture the extraordinary potential of technology, we’ll cement the UK’s position as the world’s pre-eminent financial centre.’’