UK Fintech review expected to be released next month, seeks to boost Fintech sector post Brexit
In March of 2020, the Chancellor of the Exchequer Rishi Sunak delivered the UK budget. Included in the presentation was the announcement of a Fintech sector review – a study to be led by Ron Kalifa OBE, who was previously CEO Worldpay and current Chair of Network International. According to a report in the FT, this review will be published next month and will address several important topics for the UK Fintech industry.
The UK is a recognized global Fintech hub. The UK has long been an important financial center. A combination of an entrepreneurial and business-friendly environment along with policymakers who understand the importance of innovation has fostered a robust Fintech market. Brexit has placed this prominence at risk.
The UK estimates that the Fintech industry is worth approximately £7 billion to the economy. This sector of finance has created around 60,000 jobs, driving economic growth. A post on the HM Treasury website states the review will “help to ensure UK Fintech has the resources to grow and succeed, that conditions are right for the widespread adoption of financial technology, and that the UK’s global reputation for innovation is maintained and advanced.”
Last October, a report by EY indicated that over 7,500 finance-related jobs had exited the UK following the Brexit decision. While some note that this amount of departures falls short of more dire predictions, it is still a sizeable number and more migrations to continental Europe may take place in the future.
A recent report by CNBC, noted that the Brexit agreement had little to say about financial services – perhaps generating more questions than answers.
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