The size of the UK fintech sector is relatively large on the global scale, standing at $4.1 billion in 2020. The UK government thinks it can become bigger and they continue to hedge their bets on financial services being the primary route to bolster public finances and job creation.
The British government’s attempts to build something around a post-Brexit economy includes the Kalifa Review. This assessment seeks to lay out a strategy to boost UK fintech, based on an independent review led by Ron Kalifa, Chairman of Network International. The report seeks to establish a strategy intended to put UK at the top of the global fintech league table.
Looking into the matter for Digital Journal is Anmolpreet Singh, who is a Senior R&D Tax Software Consultant at Ayming UK. Anmolpreet argues that global financial services are still very fractured and the UK should focus on providing systems architecture and supporting smoother integration.
According to Singh, a joined up approach to any future changes is essential. He notes: “Innovation in financial services must be a strategic focus for the UK. With the right support, we can solidify our position as a world leader. Globally the infrastructure is still very disjointed and UK companies can lead system integration.”
The foundations for this holistic approach exist, says Singh, stating: “We already have a great framework for innovation through initiatives such as Open Banking, which offers a more coherent set of requirements compared to global equivalents such as PSD2.”
For this to succeed it needs a new tactic. Singh says: “The UK government should specifically target these infrastructure problems and legacy issues through R&D tax credits and fintech growth funds. This will support the development of technologies such as blockchain ledgers to integrate systems which can form the bedrock of a global platform.”
Even here, more can be done. Singh recommends: “To accelerate that process further, the Government should also create strategic collaboration with universities, using PhD research and tech incubators to support investment.”
