The United Kingdom Government has this week revealed three new initiatives through a keynote speech at the 2016 Innovate Finance Global Summit held in Guildhall London with a purpose to retain the UK crown as the global FinTech Capital of the world.
Economic Secretary to the Treasury Harriett Baldwin announced that the UK will:
1. Establish a FinTech panel and delivery support function which will set an overarching FinTech strategy for the UK and monitor and drive forward FinTech initiatives.
2. Create a professional services information hub for FinTech, making it easier for them to source legal and accountancy services, and access practical and cost-effective basic services.
3. Alongside UK Trade and Investment will establish ‘FinTech Bridges’ with priority global markets, helping UK FinTech to expand internationally.
In a report by EY which was commissioned by HM Treasury to compare the UK environment for FinTech against other leading FinTech hubs internationally it was revealed more people work in the FinTech sector of the United Kingdom than in Hong Kong, Australia and Singapore combined, generating £6.6 billion in revenue in 2015 with a workforce of over 60,000 employees.
The Economic Secretary, Harriett Baldwin said:
“The government wants to ensure that the UK continues to be the best place in the world to be a FinTech company. The measures announced today show that we are not resting on our laurels and are committed to initiatives which will make our FinTech sector even stronger.”
Imran Gulamhuseinwala, EY Partner and FinTech lead said on Monday:
“Today’s announcement from the Treasury is an important show of support by the Government for the UK FinTech industry. The initial three recommendations that are being adopted will help secure and boost the UK’s market leading position as the global centre of the hugely dynamic FinTech market.”
The Economic Secretary wants FinTech to reach every part of the United Kingdom as well as having oversea success with the view that:
“The UK leads across a broad range of FinTech specialisms – from digital currencies to alternative lending, e-commerce and many others. There are few areas of FinTech that the UK does not have an interest in. But in a globalised world, there can also be benefits to specialisation. With specialisation comes a concentration of knowledge, efficiencies, and a potential market edge.”
Hopefully with all these new initiatives announced and the Government continuing to take a positive stance on digital currencies, we will see the UK banking sector opening its doors to more cryptocurrency related start-up companies and many long established bitcoin companies in the ecosystem who have been waiting patiently for a friendly banking relationship in the UK very soon.