Fintech News - UK should have a fintech taskforce to protect £11bn industry, says report by Ron Kalifa
The government has been urged to establish a high-profile taskforce to lead development in financial technology as part of the UK's growth plans after Brexit.
The body, which might be known as the Digital Economy Taskforce, would get together senior figures from across government and regulators to co ordinate policy and remove blockages.
The recommendation is actually part of a report by Ron Kalifa, former boss on the payments processor Worldpay, which was made by way of the Treasury contained July to think of ways to make the UK 1 of the world's top fintech centres.
"Fintech isn't a niche market within financial services," says the review's writer Ron Kalifa OBE.
Kalifa's Fintech Review finally published: Here are the 5 key conclusions Image source: Ron Kalifa OBE/Bank of England.
For weeks rumours are actually swirling regarding what might be in the long-awaited Kalifa assessment into the fintech sector and, for the most part, it appears that most were spot on.
According to FintechZoom, the report's publication comes nearly a year to the day time that Rishi Sunak first guaranteed the review in his first budget as Chancellor on the Exchequer found May last year.
Ron Kalifa OBE, a non-executive director belonging to 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 5 key tips to the Government:
Regulation and policy
In a move that has got to be music to fintech's ears, Kalifa has suggested developing and adopting typical details requirements, which means that incumbent banks' slow legacy systems just simply won't be enough to get by anymore.
Kalifa has also recommended prioritising Smart Data, with a certain target on open banking and opening upwards a lot more routes of talking between open banking-friendly fintechs and bigger financial institutions.
Open Finance even gets a shout-out in the report, with Kalifa telling the government that the adoption of available banking with the goal of reaching open finance is of paramount importance.
As a consequence of their increasing popularity, Kalifa has additionally advised tighter regulation for cryptocurrencies and he's also solidified the dedication to meeting ESG objectives.
The report suggests the construction of a fintech task force as well as the improvement of the "technical awareness of fintechs' markets" and business models will help fintech flourish inside the UK - Fintech News .
Watching the good results on the FCA' regulatory sandbox, Kalifa has also recommended a' scalebox' that will help fintech firms to grow and grow their operations without the fear of being on the wrong side of the regulator.
In order to deliver the UK workforce up to speed with fintech, Kalifa has recommended retraining employees to satisfy the increasing needs of the fintech segment, proposing a series of inexpensive training classes to do so.
Another rumoured add-on to have been integrated in the article is a brand new visa route to ensure top tech talent is not put off by Brexit, promising the UK continues to be a top international competitor.
Kalifa indicates a' Fintech Scaleup Stream' which will offer those with the necessary skills automatic visa qualification and offer support for the fintechs selecting top tech talent abroad.
As earlier suspected, Kalifa suggests the governing administration create a £1bn Fintech Growth Fund to help homegrown firms scale and expand.
The report suggests that a UK's pension pots might be a great method for fintech's funding, with Kalifa pointing out the £6 trillion currently sat within private pension schemes inside the UK.
According to the report, a small slice of this particular container of money may be "diverted to high growth technology opportunities like fintech."
Kalifa has also recommended expanding R&D tax credits because of their popularity, with ninety seven per dollar of founders having expended tax incentivised investment schemes.
Despite the UK becoming a home to several of the world's most successful fintechs, few have chosen to mailing list on the London Stock Exchange, for truth, the LSE has noticed a forty five per cent reduction in the number of companies that are listed on its platform since 1997. The Kalifa examination sets out measures to change that and also makes several suggestions that seem to pre-empt the upcoming Treasury backed assessment into listings led by Lord Hill.
The Kalifa article reads: "IPOs are thriving worldwide, driven in section by tech businesses that have become vital to both customers and companies in search of digital tools amid the coronavirus pandemic and it's important that the UK seizes this particular opportunity."
Under the strategies laid out in the review, free float needs will be reduced, meaning companies don't have to issue at least 25 per cent of their shares to the public at virtually any one time, rather they will just have to offer 10 per cent.
The review also suggests implementing dual share components that are more favourable to entrepreneurs, meaning they are going to be in a position to maintain control in their companies.
To make sure the UK is still a leading international fintech destination, the Kalifa review has advised revising the present Fintech News - "Fintech International Action Plan."
The review suggests launching a worldwide fintech portal, including a specific introduction of the UK fintech world, contact information for localized regulators, case scientific studies of previous success stories as well as details about the support and grants available to international companies.
Kalifa even suggests that the UK really needs to develop stronger trade connections with before untapped markets, concentrating on Blockchain, regtech, payments & remittances and open banking.
Another solid rumour to be established is Kalifa's recommendation to write ten fintech' Clusters', or regional hubs, to ensure local fintechs are provided the support to develop and grow.
Unsurprisingly, London is actually the only great hub on the list, which means Kalifa categorises it as a worldwide leader in fintech.
After London, there are actually three large as well as established clusters where Kalifa recommends hubs are actually established, the Pennines (Leeds and Manchester), Scotland, with specific reference 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 Bristol and Bath, Newcastle and Durham, 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 endeavor to concentrate on the specialities of theirs, while also enhancing the channels of communication between the other hubs.
Fintech News - UK needs a fintech taskforce to protect £11bn business, says article by Ron Kalifa