Fintech News - UK needs to have a fintech taskforce to protect £11bn business, says article by Ron Kalifa
The federal government has been urged to build a high-profile taskforce to guide innovation in financial technology during the UK's growth plans after Brexit.
The body, which may be known as the Digital Economy Taskforce, would get together senior figures coming from across regulators and government to co-ordinate policy and remove blockages.
The recommendation is a part of a report by Ron Kalifa, former employer of your payments processor Worldpay, who was asked by way of the Treasury in July to come up with ways to make the UK 1 of the world's top fintech centres.
"Fintech is not a market within financial services," states the review's writer Ron Kalifa OBE.
Kalifa's Fintech Review finally published: Here are the five key conclusions 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 and, for probably the most part, it looks like most were area on.
According to FintechZoom, the report's publication arrives close to a year to the morning that Rishi Sunak originally guaranteed the review in his 1st budget as Chancellor on the Exchequer in May last season.
Ron Kalifa OBE, a non-executive director belonging to the Court of Directors at the Bank of England and also the vice chairman of WorldPay, was selected by Sunak to head upwards the significant jump into fintech.
Here are the reports five key 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 data standards, which means that incumbent banks' slow legacy systems just simply won't be enough to get by any longer.
Kalifa has also advised prioritising Smart Data, with a specific concentrate on open banking and also opening up a great deal more channels of communication between bigger financial institutions and open banking-friendly fintechs.
Open Finance even gets a shout-out in the article, with Kalifa informing the federal government that the adoption of open banking with the goal of reaching open finance is actually of paramount importance.
As a consequence of their increasing popularity, Kalifa has also recommended tighter regulation for cryptocurrencies and he has also solidified the determination to meeting ESG goals.
The report suggests the construction associated with a fintech task force and the improvement of the "technical awareness of fintechs' business models and markets" will help fintech flourish inside the UK - Fintech News .
Watching the achievements of the FCA' regulatory sandbox, Kalifa has also proposed a' scalebox' that will assist fintech businesses to grow and expand their businesses without the fear of choosing to be on the bad side of the regulator.
In order to deliver the UK workforce up to date with fintech, Kalifa has recommended retraining employees to meet the expanding requirements of the fintech segment, proposing a series of inexpensive training courses to do so.
Another rumoured add-on to have been included in the article is actually a brand new visa route to ensure high tech talent isn't put off by Brexit, promising the UK remains a leading international competitor.
Kalifa indicates a' Fintech Scaleup Stream' which will supply those with the necessary skills automatic visa qualification and offer guidance for the fintechs choosing high tech talent abroad.
As earlier suspected, Kalifa suggests the government 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 great tool for fintech's funding, with Kalifa mentioning the £6 trillion currently sat inside private pension schemes within the UK.
According to the report, a tiny slice of this pot of cash can be "diverted to high development technology opportunities as fintech."
Kalifa in addition has suggested expanding R&D tax credits because of their popularity, with 97 per cent of founders having expended tax incentivised investment schemes.
Despite the UK acting as home to several of the world's most productive fintechs, few have picked to mailing list on the London Stock Exchange, for truth, the LSE has observed a forty five per cent reduction in the number of companies which are listed on its platform after 1997. The Kalifa evaluation sets out measures to change that and also makes some recommendations that appear to pre-empt the upcoming Treasury-backed review into listings led by Lord Hill.
The Kalifa report reads: "IPOs are actually thriving worldwide, driven in section by tech organizations that will have become indispensable to both customers and companies in search of digital tools amid the coronavirus pandemic and it's critical that the UK seizes this opportunity."
Under the recommendations laid out in the assessment, free float requirements will likely be reduced, meaning businesses don't have to issue at least twenty five per cent of the shares to the general population at any one time, rather they'll just have to provide ten per cent.
The examination also suggests using dual share components which are much more favourable to entrepreneurs, meaning they are going to be in a position to maintain control in their companies.
To ensure the UK is still a leading international fintech destination, the Kalifa assessment has advised revising the current Fintech News - "Fintech International Action Plan."
The review suggests launching a worldwide fintech portal, including a specific overview of the UK fintech world, contact info for local regulators, case studies of previous success stories as well as details about the support and grants available to international companies.
Kalifa even implies that the UK really needs to create stronger trade connections with previously untapped markets, focusing on Blockchain, regtech, payments & open banking and remittances.
Another strong rumour to be confirmed is Kalifa's recommendation to craft ten fintech' Clusters', or maybe regional hubs, to guarantee local fintechs are actually provided the support to grow and grow.
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 actually three big and established clusters where Kalifa suggests hubs are actually established, the Pennines (Manchester and Leeds), Scotland, with specific guide to the Edinburgh/Glasgow corridor, along with Birmingham - Fintech News .
While other areas of the UK were categorised as emerging or specialist clusters, like Bristol and Bath, Newcastle and Durham, Cambridge, Reading and West of London, Wales (especially Cardiff and South Wales) Northern Ireland.
The Kalifa review suggests nurturing the top 10 regions, making an endeavor to center on their specialities, while at the same enhancing the channels of interaction between the other hubs.
Fintech News - UK needs to have a fintech taskforce to safeguard £11bn business, says report by Ron Kalifa