Kalifa Review lays out roadmap for world-leading fintech sector
Increased government support, growth funding and regulatory sandboxes could lead the UK to the top of the global fintech league table, according to the highly-anticipated Kalifa Review into fintech.
The independent review was commissioned by the government, and led by former Worldpay chief executive Ron Kalifa OBE. It found that the UK’s fintech sector is at a “pivotal moment”, but requires more support in order to realise its potential.
Kalifa has outlined a number of recommendations which could help to create highly skilled jobs across the UK, boost trade and extend a competitive edge over other leading fintech hubs.
These include the creation of a £1bn fintech ‘growth fund’; introducing a new ‘fintech scale up’ visa route for specialists from around the world; and implementing a ‘scale box’ to provide regulatory support for growing firms.
Kalifa also recommended a change to UK listings rules, to allow fintech firms to benefit from a free float reduction and dual class shares.
Read more: Fintech sector showed resilience during Covid-19
As Peer2Peer Finance News reported yesterday, Kalifa has also called for a new body to be created with a mandate to support national coordination and growth in fintech across the UK.
“Fintech has the power to change lives, both in terms of job creation and better wages that are so essential to our recovery; and making financial services more accessible and relevant to people’s lives,” said Kalifa.
“Britain has a proud record of starting-up and scaling-up some of the best known fintech products, but we cannot rest on our laurels. The next powerhouses will not be created by accident.
“We must continue to nurture our start-up culture, but crucially we must also give our high-growth firms the support to become global giants.
“With the right reforms that encourage entrepreneurialism, investment and make it easy to attract and invest in talent, Britain can usher in a period of dominance that can help us build back better from Covid-19.”
The review found that the UK has more than 10 per cent of the global market share in fintech and the sector is now worth more than £11bn per year to the UK economy.
“Fintech is one of the UK’s great success stories and will help us seize new opportunities around the world,” said Rishi Sunak, Chancellor of the Exchequer.
“We must now build on our global reputation for fostering innovative start-ups and ensure firms can access the talent, finance and support they need to scale up here in the UK.
“This review will make an important contribution to our plan to retain the UK’s fintech crown, create more skilled jobs, and deliver better financial services for people and businesses.”
Read more: Innovate Finance: Covid-19 has shown importance of fintech