Fintech News – UK needs to have a fintech taskforce to shield £11bn industry, says report by Ron Kalifa
The federal government has been urged to establish a high profile taskforce to guide development in financial technology together with the UK’s growth plans after Brexit.
The body, which might be referred to as the Digital Economy Taskforce, would draw in concert senior figures from across government and regulators to co ordinate policy and clear away blockages.
The suggestion is part of a report by Ron Kalifa, former supervisor of the payments processor Worldpay, that was asked with the Treasury contained July to formulate ways to make the UK one of the world’s reputable fintech centres.
“Fintech isn’t a niche within financial services,” states the review’s author Ron Kalifa OBE.
Kalifa’s Fintech Review finally published: Here are the five key results Image source: Ron Kalifa OBE/Bank of England.
For weeks rumours have been swirling regarding what might be in the long-awaited Kalifa assessment into the fintech sector and, for the most part, it looks like most were spot on.
According to FintechZoom, the report’s publication will come close to a season to the day that Rishi Sunak originally promised 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 on the Bank of England and the vice-chairman of WorldPay, was selected by Sunak to head up 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 and adopting common data requirements, meaning that incumbent banks’ slower legacy methods just simply will not be enough to get by anymore.
Kalifa has additionally recommended prioritising Smart Data, with a specific concentrate on receptive banking and opening up a great deal more routes of correspondence between open banking-friendly fintechs and bigger financial institutions.
Open Finance also gets a shout out in the article, with Kalifa revealing to 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 additionally recommended tighter regulation for cryptocurrencies and also he’s in addition solidified the determination to meeting ESG objectives.
The report implies the construction of a fintech task force and the improvement of the “technical awareness of fintechs’ markets” and business models will help fintech flourish inside the UK – Fintech News .
Following the achievements on the FCA’ regulatory sandbox, Kalifa has also proposed a’ scalebox’ which will help fintech businesses to grow and expand their operations without the fear of getting on the bad aspect of the regulator.
So as to deliver the UK workforce up to speed with fintech, Kalifa has recommended retraining workers to cover the growing requirements of the fintech sector, proposing a set of low-cost education programs to accomplish that.
Another rumoured add-on to have been included in the report is a new visa route to ensure high tech talent is not put off by Brexit, guaranteeing the UK remains a top international competitor.
Kalifa suggests a’ Fintech Scaleup Stream’ that will give those with the required skills automatic visa qualification and also offer assistance for the fintechs hiring high tech talent abroad.
As earlier suspected, Kalifa indicates the governing administration create a £1bn Fintech Growth Fund to assist homegrown firms scale and grow.
The report implies that a UK’s pension growing pots may just be a fantastic tool for fintech’s financial backing, with Kalifa pointing out the £6 trillion currently sat in private pension schemes inside the UK.
Based on the report, a small slice of this particular container of money may be “diverted to high expansion technology opportunities as fintech.”
Kalifa has also advised expanding R&D tax credits thanks to their popularity, with 97 per dollar of founders having expended tax-incentivised investment schemes.
Despite the UK being home to several of the world’s most successful fintechs, very few have selected to list on the London Stock Exchange, in fact, the LSE has observed a forty five per cent reduction in the selection of listed companies on its platform since 1997. The Kalifa evaluation sets out steps to change that and makes several suggestions which appear to pre-empt the upcoming Treasury backed assessment directly into listings led by Lord Hill.
The Kalifa report reads: “IPOs are actually thriving worldwide, driven in section by tech businesses that have become vital to both customers and businesses in search of digital resources amid the coronavirus pandemic plus it is crucial that the UK seizes this opportunity.”
Under the recommendations laid out in the review, free float requirements will be reduced, meaning businesses no longer have to issue not less than twenty five per cent of their shares to the public at almost any one time, rather they’ll just need to give 10 per cent.
The review also suggests using dual share structures that are more favourable to entrepreneurs, meaning they will be able to maintain control in their companies.
In order to ensure the UK is still a leading international fintech desired destination, the Kalifa review has recommended revising the current Fintech News – “Fintech International Action Plan.”
The review suggests launching an international fintech portal, including a specific overview of the UK fintech arena, contact info for local regulators, case studies of previous success stories as well as details about the support and grants readily available to international companies.
Kalifa even implies that the UK really needs to build stronger trade connections with before untapped markets, focusing on Blockchain, regtech, payments and remittances and open banking.
Another solid rumour to be confirmed is Kalifa’s recommendation to craft 10 fintech’ Clusters’, or maybe regional hubs, to guarantee local fintechs are offered the assistance to grow and expand.
Unsurprisingly, London is the only super hub on the summary, meaning Kalifa categorises it as a worldwide leader in fintech.
After London, there are 3 big and established clusters where Kalifa suggests hubs are demonstrated, the Pennines (Manchester and Leeds), Scotland, with particular reference to the Edinburgh/Glasgow corridor, along with Birmingham – Fintech News .
While other areas of the UK were categorised as emerging or perhaps 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 indicates nurturing the top ten regions, making an effort to focus on their specialities, while also enhancing the channels of communication between the other hubs.
Fintech News – UK should have a fintech taskforce to protect £11bn business, says article by Ron Kalifa