What does the UK fintech sector want from the next government? Three industry leaders weigh in
The UK fintech sector has grown rapidly since the early 2000s, driven by advancements in digital technology, supportive regulatory frameworks, and London’s status as a global financial hub.
As Brits head to the polls this week, what does the fintech sector want from the next government?
This has established the UK as a leader in financial innovation and technology integration. As Brits head to the polls this week for a general election, key players in the fintech sector have shared what they wish to see from the next government to help the industry maintain and enhance its competitive edge globally.
From more engagement with the sector to encourage growth beyond the M25, incentivising partnership opportunities, and more support for business innovation, what measures will drive the future of UK fintech?
Fintech as a tool for productivity
According to Brandon Till, Head of Transformation at Soldo, business leaders who engage with fintechs are keen to have a unified tech stack, and the UK government can help in this respect by providing incentives for fintechs to partner, sharing knowledge and capabilities.
He comments: “My hope is that whoever leads the UK government, there will be a greater focus on fostering a collaborative environment within the fintech sector that focuses on helping UK businesses grow.”
In turn, Till believes this will foster enhanced productivity. He continues: “While the UK economy is performing better than expected, there is still a problem with productivity. We have a solution for this, which is to encourage partnerships between traditional financial institutions and fintech companies with grants and tax relief.
“This approach would help transfer knowledge, promote innovation, and improve competition and services. By supporting fintech firms, the government can help them grow and offer advanced financial solutions that make businesses more efficient and competitive.”
Boosting the growth of fintechs beyond London
While London is seen as the heart of the fintech sector, there is talent and expertise far beyond the UK’s capital that is often overlooked. Manchester-based Aro is keen to see more engagement across the country. Emma Steeley, CEO of Aro, comments: “The upcoming general election holds the potential to drive financial inclusion and provoke substantial positive changes.
“From the next government, we need to see a commitment to supporting innovation across the lending sector, which can enhance financial accessibility for consumers and businesses alike. Policies that promote open banking innovation, foster competition, and encourage responsible lending practices will be crucial to overhaul the current system to drive sustainable progress in this industry.
“We envision a future where government initiatives complement private sector innovation, creating a fertile ground for fintech growth in all corners of the country. The industry has been great at collaborating and driving initiatives forward, such as Clearscore and Zopa’s ‘Fintech Pledge’, but we’re yet to see coordinated efforts on a national scale with the government that harness the full potential of fintech to democratise access to financial services.
“We urge the new government to actively engage more with industry leaders (particularly those based outside of London) to understand our needs and challenges. By doing so, they can implement policies that not only support the continued success of fintech companies, but also drive broader economic benefits for communities across the UK.”
Continuing the growth trajectory
As a sector, fintech is regularly punctuated by growth milestones and key industry breakthroughs. Darren Upson, VP at Tipalti, believes the new UK government should incentivise businesses to invest in new technology through grants and tax cuts to continue to drive further sustainable growth and spur new tech innovation.
He says: “For several years, growth has been sluggish for UK businesses. Operating in a high interest rate environment and being faced with increasing pressure from rising operational costs and fluctuating consumer demand, 78% of finance leaders turned to sustainable growth over growth-at-all-costs to navigate uncertain waters.
“Now, with the UK’s tech IPO market finally emerging from hibernation, there is cautious optimism for growth and IPO recovery in 2024. But to capitalise on returning investor interest and solidify the UK’s position as a global fintech leader, the incoming government must show their support for businesses on their path towards growth. Policies that encourage businesses to invest in technology through grants or tax relief efforts will help drive crucial efficiency needed to fast track business success.
“Incentivising businesses – and their finance teams – to turn to technologies such as automation will alleviate burdensome and time-consuming tasks like financial administration. This will free up time for businesses to pull more strategic levers that drive growth and contribute to overall efficiency in the industry.
“A more technologically advanced and efficient business sector can lead to increased competitiveness on a global scale, attracting more investment, talent, and opportunities to the UK – aiding further economic recovery and growth.”
Conclusion
In conclusion, the UK fintech sector stands poised for continued leadership on the global stage, fuelled by a legacy of innovation and robust technological integration.
As the country approaches a pivotal election, there is a strong call for policies that promote inclusive growth beyond London, ensuring that all regions benefit from fintech’s transformative potential.
With a focus on supporting sustainable growth, attracting international talent, and implementing supportive regulatory frameworks, the UK government can pave the way for a resilient fintech ecosystem that propels both economic prosperity and technological advancement across the country.
