Fintech News – UK should have a fintech taskforce to safeguard £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 progress plans after Brexit.
The body, which may be referred to as the Digital Economy Taskforce, would get together senior figures coming from across government and regulators to co ordinate policy and eliminate blockages.
The suggestion is actually a part of an article by Ron Kalifa, former boss on the payments processor Worldpay, that was made by the Treasury contained July to formulate ways to create the UK one of the world’s top fintech centres.
“Fintech isn’t a niche within financial services,” alleges 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 are actually swirling concerning what can be in the long-awaited Kalifa review into the fintech sector as well as, for the most part, it seems that most were area on.
According to FintechZoom, the report’s publication will come close to a year to the day that Rishi Sunak first promised the review in his first budget as Chancellor of this Exchequer in May last year.
Ron Kalifa OBE, a non-executive director with the Court of Directors on the Bank of England and the vice-chairman of WorldPay, was selected by Sunak to head upwards the significant plunge into fintech.
Allow me to share the reports five key recommendations to the Government:
Regulation and policy
In a move that has to be music to fintech’s ears, Kalifa has suggested developing as well as adopting common details standards, which means that incumbent banks’ slower legacy systems just simply won’t be enough to get by any longer.
Kalifa has also suggested prioritising Smart Data, with a specific focus on open banking and also opening up more channels of interaction between bigger financial institutions and open banking-friendly fintechs.
Open Finance even gets a shout-out in the article, with Kalifa telling the federal government that the adoption of open banking with the intention of achieving open finance is of paramount importance.
As a consequence of their growing popularity, Kalifa has also advised tighter regulation for cryptocurrencies as well as he’s in addition solidified the commitment to meeting ESG goals.
The report suggests the creation of a fintech task force and the improvement of the “technical comprehension of fintechs’ business models and markets” will help fintech flourish inside the UK – Fintech News .
Following the good results belonging to the FCA’ regulatory sandbox, Kalifa has additionally recommended a’ scalebox’ which will assist fintech firms to develop and expand their operations without the fear of getting on the wrong side of the regulator.
To get the UK workforce up to date with fintech, Kalifa has suggested retraining workers to satisfy the growing needs of the fintech sector, proposing a series of low-cost education courses to do it.
Another rumoured add-on to have been integrated in the report is actually an innovative visa route to ensure top tech talent is not place off by Brexit, guaranteeing the UK remains a top international competitor.
Kalifa suggests a’ Fintech Scaleup Stream’ that will offer those with the required skills automatic visa qualification and also offer assistance for the fintechs selecting top tech talent abroad.
As previously suspected, Kalifa indicates the federal government create a £1bn Fintech Growth Fund to assist homegrown firms scale and grow.
The report implies that this UK’s pension planting containers may just be a great tool for fintech’s financial backing, with Kalifa mentioning the £6 trillion now sat in private pension schemes within the UK.
According to the report, a small slice of this particular container of cash could be “diverted to high expansion technology opportunities as fintech.”
Kalifa in addition has recommended 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 some of the world’s most productive fintechs, very few have picked to mailing list on the London Stock Exchange, in truth, the LSE has noticed a forty five per cent reduction in the selection of companies which are listed on its platform after 1997. The Kalifa evaluation sets out measures to change that and also makes some recommendations which appear to pre empt the upcoming Treasury backed assessment into listings led by Lord Hill.
The Kalifa report reads: “IPOs are thriving worldwide, driven in part by tech companies that have become indispensable to both buyers and companies in search of digital tools amid the coronavirus pandemic plus it is critical that the UK seizes this particular opportunity.”
Under the recommendations laid out in the assessment, free float requirements will likely be reduced, meaning companies don’t have to issue at least 25 per cent of the shares to the general population at any one time, rather they’ll just have to offer ten per cent.
The review also suggests implementing dual share structures which are a lot more favourable to entrepreneurs, meaning they will be in a position to maintain control in the companies of theirs.
to be able to ensure the UK continues to be a leading international fintech destination, the Kalifa review has recommended revising the present Fintech News – “Fintech International Action Plan.”
The review suggests launching an international fintech portal, including a specific introduction of the UK fintech arena, contact information for localized regulators, case studies of previous success stories as well as details about the help and grants available to international companies.
Kalifa even suggests that the UK needs to build stronger trade connections with previously untapped markets, focusing on Blockchain, regtech, payments and open banking and remittances.
Another solid rumour to be confirmed is Kalifa’s recommendation to create 10 fintech’ Clusters’, or regional hubs, to ensure local fintechs are given the support to develop and expand.
Unsurprisingly, London is actually the only super hub on the list, meaning Kalifa categorises it as a global leader in fintech.
After London, there are 3 large as well as established clusters wherein Kalifa recommends hubs are actually demonstrated, the Pennines (Manchester and Leeds), Scotland, with particular guide to the Edinburgh/Glasgow corridor, along with Birmingham – Fintech News .
While other areas of the UK have been 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 suggests nurturing the top 10 regions, making an effort to focus on their specialities, while simultaneously enhancing the channels of interaction between the other hubs.
Fintech News – UK needs to have a fintech taskforce to protect £11bn industry, says article by Ron Kalifa