According to a recent
report by the UK treasury, the country’s fintech sector has grown into one of the most important in the world, generating £6.6bn in revenue last year.
While the UK is already at the forefront of global fintech, this week the sectors’ leading figures met with the Government to discuss ways in which it can build on its impressive position.
Industry talksAn article for
Peer2Peer Finance News reports that a number of representatives of the sector met with treasury and trade officials over the course of two days, including City minister Simon Kirby, to discuss "the challenges and opportunities facing the sector".
According to the report, the meetings saw discussions around "the need to attract international talent to the UK's fintech workforce in the wake of the Brexit vote".
Among the attendees were representatives from Zopa and RateSetter, as well as Martin Cook, UK General Counsel at Funding Circle. Chris Woolard, Director of Strategy and Competition at the FCA, and Eileen Burbidge, CEO of Passion Capital and the treasury's fintech envoy, were also in attendance.
The article quotes John Battersby, RateSetter’s Head of Policy: “RateSetter as a business is optimistic about the future. It’s important to engage with the Government to ensure its support for the industry is going to continue. We look forward to continuing the dialogue."
Kirby adds: "Fintech is one of the shining lights of the UK economy. It is expanding rapidly, receiving high levels of investment, and employing some of the brightest minds the UK, Europe, and the world have to offer. I am determined to see fintech remain one of our great British success stories."
Peer2Peer Finance News article
Fintech post-BrexitWith Brexit on the horizon, there could be a “drastic impact” on fintech in the UK, writes Hassan Waqar for
Finextra. He says one major consequence will be UK firms losing the ability to ‘passport’ into other EU states.
£6.6bn
How much the UK fintech sector generated in 2015
If there is no agreement on ‘passport’ rights in the UK’s negotiations with the EU, adds Waqar, “there could be an end to transferable, cross-border authorisation out of the UK”. This will impact on UK fintech’s market access and level of foreign investment in the industry, he adds.
Waqar goes on to warn that Brexit could also lead to the UK struggling to continue attracting the “best skilled labour” for the fintech industry. By imposing limitations on free movement of workers, fintech firms may become motivated to “turn their backs on the UK in favour of alternative EU fintech centres”.
Finextra article
Swiss ambitionsElsewhere in Europe, the Swiss are looking to bolster their own fintech industry with a series of new “light-touch regulations”, writes Michael Shields for
Reuters.
The new rules, proposed by Switzerland’s Cabinet, are designed to “help reduce barriers to market entry and provide more legal certainty for the burgeoning sector”, adds Shields.
Switzerland’s fintech industry currently lags behind the likes of the UK and Singapore, adds Shields. “Firms specialising in crypto currencies, for instance, say financial regulations must change for them to thrive in places like Zug, dubbed ‘Crypto Valley’”, he says.
Some of the Swiss Government’s proposals include a 60-day deadline for holding money in settlement accounts, which will help crowdfunding services. A new fintech license, granted by the Swiss Financial Market Supervisory Authority (FINMA), will also be offered to institutions restricted to taking deposits of up to 100 million Swiss francs.
Finance Minister Ueli Maurer is quoted as saying the rule changes and his Government’s commitment to financial services could “provide a solution that puts us among the top (countries) in the world that regulate this”.
Reuters article
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