Fintech News - UK needs a fintech taskforce to protect £11bn business, says article by Ron Kalifa
The federal government has been urged to establish a high profile taskforce to lead development in financial technology as part of the UK's progression plans after Brexit.
The body, which could be called the Digital Economy Taskforce, would get in concert senior figures as a result of throughout regulators and government to co-ordinate policy and get rid of blockages.
The suggestion is a part of a report by Ron Kalifa, former boss of the payments processor Worldpay, which was directed with the Treasury contained July to think of ways to make the UK one of the world's leading fintech centres.
"Fintech is not a niche within financial services," says the review's writer Ron Kalifa OBE.
Kalifa's Fintech Review lastly published: Here are the five key findings Image source: Ron Kalifa OBE/Bank of England.
For weeks rumours have been swirling about what might be in the long-awaited Kalifa review into the fintech sector and also, for probably the most part, it looks like most were area on.
According to FintechZoom, the report's publication comes nearly a season to the morning that Rishi Sunak initially promised the review in his 1st budget as Chancellor on the Exchequer found May last year.
Ron Kalifa OBE, a non executive director belonging to the Court of Directors at the Bank of England and the vice chairman of WorldPay, was selected by Sunak to head upwards the deep plunge into fintech.
Allow me to share the reports five key recommendations to the Government:
Regulation and policy
In a move that has got to be music to fintech's ears, Kalifa has proposed developing and adopting common data requirements, which means that incumbent banks' slow legacy methods just simply won't be enough to get by anymore.
Kalifa has also advised prioritising Smart Data, with a specific focus on amenable banking and opening upwards more routes of correspondence between bigger financial institutions and open banking-friendly fintechs.
Open Finance actually gets a shout out in the article, with Kalifa informing the authorities that the adoption of open banking with the intention of attaining open finance is actually of paramount importance.
As a direct result of their growing popularity, Kalifa has additionally recommended tighter regulation for cryptocurrencies and he has additionally solidified the commitment to meeting ESG goals.
The report implies the construction of a fintech task force together with the improvement of the "technical understanding of fintechs' markets" and business models will help fintech flourish in the UK - Fintech News .
Watching the good results belonging to the FCA' regulatory sandbox, Kalifa has also recommended a' scalebox' that will help fintech firms to develop and grow their operations without the fear of being on the wrong side of the regulator.
To deliver the UK workforce up to speed with fintech, Kalifa has recommended retraining employees to meet the expanding requirements of the fintech sector, proposing a series of inexpensive training programs to do so.
Another rumoured addition to have been included in the report is actually an innovative visa route to make sure top tech talent isn't place off by Brexit, guaranteeing the UK is still a best international competitor.
Kalifa suggests a' Fintech Scaleup Stream' which will offer those with the required skills automatic visa qualification as well as offer support for the fintechs hiring high tech talent abroad.
As earlier suspected, Kalifa implies the federal government create a £1bn Fintech Growth Fund to help homegrown firms scale and expand.
The report indicates that this UK's pension growing pots could be a great tool for fintech's funding, with Kalifa pointing out the £6 trillion now sat in private pension schemes in the UK.
According to the report, a small slice of this cooking pot of money could be "diverted to high development technology opportunities like fintech."
Kalifa in addition has recommended expanding R&D tax credits thanks to their popularity, with ninety seven per cent of founders having used tax incentivised investment schemes.
Despite the UK being home to some of the world's most successful fintechs, few have chosen to mailing list on the London Stock Exchange, in truth, the LSE has observed a forty five per cent reduction in the selection of listed companies on its platform after 1997. The Kalifa review sets out steps to change that as well as makes several suggestions which appear to pre empt the upcoming Treasury-backed assessment directly into listings led by Lord Hill.
The Kalifa report reads: "IPOs are thriving worldwide, driven in part by tech organizations that will have become vital to both buyers and companies in search of digital tools amid the coronavirus pandemic and it's crucial that the UK seizes this opportunity."
Under the suggestions laid out in the review, free float requirements will be reduced, meaning businesses don't have to issue a minimum of 25 per cent of the shares to the general public at virtually any one time, rather they'll just need to give 10 per cent.
The evaluation also suggests implementing dual share components which are more favourable to entrepreneurs, meaning they will be able to maintain control in their companies.
In order to make sure the UK remains a leading international fintech destination, the Kalifa review has suggested revising the present Fintech News - "Fintech International Action Plan."
The review suggests launching an international fintech portal, including a specific overview of the UK fintech world, contact information for regional regulators, case studies of previous success stories as well as details about the help and support and grants readily available to international companies.
Kalifa also hints that the UK needs to build stronger trade relationships with previously untapped markets, focusing on Blockchain, regtech, payments and remittances and open banking.
Another solid rumour to be established is Kalifa's recommendation to craft ten fintech' Clusters', or perhaps regional hubs, to ensure local fintechs are given the assistance to grow and expand.
Unsurprisingly, London is actually the only great hub on the listing, meaning Kalifa categorises it as a global leader in fintech.
After London, there are three big and established clusters in which Kalifa recommends hubs are demonstrated, the Pennines (Manchester and Leeds), Scotland, with specific resource to the Edinburgh/Glasgow corridor, as well as Birmingham - Fintech News .
While other facets of the UK have been categorised as emerging or specialist clusters, like Bristol and Bath, Durham and Newcastle, Cambridge, West and Reading of London, Wales (especially Cardiff along with South Wales) Northern Ireland.
The Kalifa review suggests nurturing the top 10 regions, making an attempt to focus on their specialities, while also enhancing the channels of interaction between the various other hubs.
Fintech News - UK should have a fintech taskforce to safeguard £11bn business, says report by Ron Kalifa