Fintech News – UK should have a fintech taskforce to protect £11bn industry, says report by Ron Kalifa
The federal government has been urged to build a high profile taskforce to guide innovation in financial technology together with the UK’s growth plans after Brexit.
The body, which could be referred to as the Digital Economy Taskforce, would draw together senior figures coming from throughout government and regulators to co ordinate policy and get rid of blockages.
The suggestion is actually part of a report by Ron Kalifa, former boss of the payments processor Worldpay, who was asked by the Treasury in July to come up with ways to create the UK one of the world’s top fintech centres.
“Fintech is not a niche within financial services,” states the review’s writer Ron Kalifa OBE.
Kalifa’s Fintech Review finally published: Here are the 5 key findings Image source: Ron Kalifa OBE/Bank of England.
For weeks rumours happen to be swirling about what can be in the long-awaited Kalifa assessment into the fintech sector as well as, for the most part, it looks like most were position on.
According to FintechZoom, the report’s publication comes close to a season to the morning that Rishi Sunak originally said the review in his 1st budget as Chancellor of the Exchequer contained May last season.
Ron Kalifa OBE, a non-executive director belonging to the Court of Directors on the Bank of England and also the vice-chairman of WorldPay, was selected by Sunak to head up the significant jump into fintech.
Allow me to share the reports 5 important tips to the Government:
Regulation and policy
In a move that has to be music to fintech’s ears, Kalifa has proposed developing and adopting common details requirements, which means that incumbent banks’ slow legacy methods just simply won’t be sufficient to get by anymore.
Kalifa has also advised prioritising Smart Data, with a specific concentrate on open banking and opening up a great deal more channels of communication between open banking-friendly fintechs and bigger financial institutions.
Open Finance also gets a shout-out in the report, with Kalifa informing the federal government that the adoption of available banking with the goal of achieving open finance is actually of paramount importance.
As a result of their growing popularity, Kalifa has additionally advised tighter regulation for cryptocurrencies and he has also solidified the commitment to meeting ESG objectives.
The report implies the construction of a fintech task force together with the improvement of the “technical awareness of fintechs’ markets” and business models will help fintech flourish inside the UK – Fintech News .
Following the success of the FCA’ regulatory sandbox, Kalifa has also recommended a’ scalebox’ which will aid fintech firms to develop and expand their businesses without the fear of choosing to be on the bad side of the regulator.
In order to bring the UK workforce up to date with fintech, Kalifa has recommended retraining workers to meet the increasing needs of the fintech segment, proposing a set of low-cost education programs to accomplish that.
Another rumoured addition to have been included in the report is actually the latest visa route to make sure top tech talent is not place off by Brexit, promising the UK is still a best international competitor.
Kalifa suggests a’ Fintech Scaleup Stream’ which will offer those with the needed skills automatic visa qualification and also offer guidance for the fintechs choosing high tech talent abroad.
As previously suspected, Kalifa suggests the governing administration produce a £1bn Fintech Growth Fund to assist homegrown firms scale and grow.
The report indicates that a UK’s pension pots could be a fantastic tool for fintech’s funding, with Kalifa mentioning the £6 trillion currently sat inside private pension schemes inside the UK.
As per the report, a small slice of this particular cooking pot of cash may be “diverted to high expansion technology opportunities like fintech.”
Kalifa has also suggested expanding R&D tax credits thanks to their popularity, with 97 per dollar of founders having used tax-incentivised investment schemes.
Despite the UK acting as home to several of the world’s most effective fintechs, very few have picked to subscriber list on the London Stock Exchange, in fact, the LSE has observed a 45 per cent reduction in the selection of listed companies on its platform since 1997. The Kalifa examination sets out measures to change that as well as makes some suggestions which seem to pre empt the upcoming Treasury backed review directly into listings led by Lord Hill.
The Kalifa article reads: “IPOs are thriving globally, driven in part by tech businesses that will have become essential to both consumers and companies in search of digital resources amid the coronavirus pandemic and it is important that the UK seizes this opportunity.”
Under the suggestions laid out in the assessment, free float requirements will likely be reduced, meaning companies no longer have to issue at least twenty five per cent of the shares to the public at any one time, rather they’ll just need to offer 10 per cent.
The examination also suggests using dual share structures which are more favourable to entrepreneurs, meaning they will be in a position to maintain control in their companies.
In order to make certain the UK remains a best international fintech destination, the Kalifa assessment has recommended revising the present Fintech News – “Fintech International Action Plan.”
The review suggests launching an international fintech portal, including a specific overview of the UK fintech world, contact information for localized regulators, case research studies of previous success stories and details about the help and grants available to international companies.
Kalifa also hints that the UK really needs to develop stronger trade interactions with previously untapped markets, focusing on Blockchain, regtech, payments & remittances and open banking.
Another powerful rumour to be confirmed is Kalifa’s recommendation to craft ten fintech’ Clusters’, or regional hubs, to guarantee local fintechs are given the assistance to grow and expand.
Unsurprisingly, London is the only super hub on the list, meaning Kalifa categorises it as a worldwide leader in fintech.
After London, there are three large and established clusters in which Kalifa suggests hubs are demonstrated, the Pennines (Leeds and Manchester), Scotland, with specific resource to the Edinburgh/Glasgow corridor, along with Birmingham – Fintech News .
While other aspects of the UK were categorised as emerging or perhaps specialist clusters, like Bath and Bristol, Durham and Newcastle, Cambridge, West and Reading of London, Wales (especially Cardiff along with South Wales) Northern Ireland.
The Kalifa review suggests nurturing the top ten regions, making an attempt to center on their specialities, while at the same enhancing the channels of communication between the various other hubs.
Fintech News – UK needs a fintech taskforce to safeguard £11bn industry, says report by Ron Kalifa