Kalifa Review: One year on
As the Kalifa Review into UK fintech has reached its one-year anniversary, let’s delve into its impact.
The independent review, which was commissioned by the government, and led by former Worldpay chief executive Ron Kalifa OBE, was published on 26 February last year.
The review found that the UK’s fintech sector is at a “pivotal moment”, but requires additional support to realise its potential.
Read more: British Patient Capital chief praises Kalifa Review ahead of upcoming anniversary
Kalifa made a number of recommendations such as creating a £1bn fintech ‘growth fund’; a ‘fintech scale-up’ visa route for specialists and a ‘scalebox’ to provide regulatory support for growing firms.
Several recommendations have been implemented such as plans for scale-up visas, a central bank digital currency, a new industry-led Centre for Finance, Innovation and Technology (CFIT) and a Financial Conduct Authority scalebox for growing fintechs.
Treasury-backed schemes have been making funding streams available to businesses, and there have been improvements to the listings regime.
Read more: Funding Circle and Zopa call for more action after Kalifa Review
However, fintech trade body Innovate Finance has also called for industry, government and regulators to better address the growth capital gap in the UK, to drive forward the timely delivery of the CFIT and to work together to create a clear strategy for cryptocurrency and decentralised finance.
Members of the fintech trade body have also said there is an opportunity to quicken the development and growth of fintech clusters through further investment.
Read more: Fintechs call for P2P access to term funding scheme
Charlotte Crosswell, chair and trustee of the Open Banking Implementation Entity, said she was proud of the progress that has been made so far but added there is more to come.
“The Kalifa Review set out an ambitious and transformational vision for the future of innovation within our world-leading financial services sector,” she said.
“The UK should have enormous pride in what the sector has achieved to date, but that should be mirrored by an equivalent belief in what we can achieve in the future.
“This belief needs to be met with commitment and action from policymakers, and it is encouraging to see the first green shoots of that commitment through government seed funding for the CFIT.
“There also needs to be equal commitment to putting in place the right policy and regulatory frameworks to support financial innovation. I am encouraged by the progress of smart data draft legislation, which should be tabled in the next session of Parliament.
“Similarly, I look forward to the forthcoming Competition & Markets Authority and joint regulatory statements on the future of open banking.
“With more than five million active open banking users and a world-leading, thriving ecosystem of fintechs delivering innovative, real world solutions, we are in a strong position to take open banking mainstream.
“I was proud to play my part in contributing to the Kalifa Review and its recommendations. I have the upmost confidence that the UK can match its ambition with action to deliver growth and benefits for our businesses and citizens alike.”