TheCityUK and PA Consulting have released a report calling for a consolidation of the regulation that affects UK FinTech firms in order to ease the burden during the Coronavirus crisis.
The research found that while firms welcomed the UK’s progressive approach to sector regulation, FinTech leaders said that regulatory hurdles remain a barrier and difficult to understand.
“The sector is calling for FinTech regulation to be consolidated and made more user friendly, particularly if the UK is to maintain its global leadership in the market,” a statement explained.
Miles Celic, chief executive at TheCityUK, pointed out that more than 1,600 FinTech firms operating in the UK, before arguing that the sector needs further regulatory support to take its growth to the next level.
“The UK’s regulatory sandbox approach has been hugely successful and internationally acclaimed, but is starting to show limitations as the sector grows and matures,” he commented. “A broader framework needs to be developed with industry to reflect the expansion of the FinTech sector and ongoing regulatory development of maturing firms.”
Alex McGill, managing consultant at PA Consulting, said that the report highlighted pragmatic and actionable recommendations that industry and government can take. "As a global leader in this space, the UK should be striving to match the innovation of our FinTechs with the collaboration and support of our regulators.”
The report focused on four key elements which are essential to supporting the next stage of UK FinTech growth:
• Clarifying regulatory support and engagement.
• Building on success by delivering new initiatives.
• Integrating innovation across the supervisory framework.
• Strengthening support of FinTech expansion into overseas markets.
Recent Stories