Fintech Founders: Kalifa Review marks a seminal moment for UK Fintech
Fintech Founders welcome the publication of this Strategic Review which highlights the vital role that Fintech makes to the UK economy. The Review contains some compelling recommendations for how the sector can and should be supported in the future.
Christian Faes, Chair of Fintech Founders, who contributed to the Kalifa Review, said: "The Kalifa Review has the potential to be a seminal moment for the Fintech sector in the UK. It is time to re-invigorate the sector, and I know that fellow founders want to play their part in driving growth, innovation, and in the process, an economic recovery for the whole country.
There are a number of encouraging recommendations that the Government should urgently consider. In particular, the proposal to expand R&D tax credits, the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) to regulated Fintechs is a welcome move, and one that Fintech Founders has long called for. ”
The scope of the Review has been impressive – ranging from Fintechs still at the early stages of seed funding through to larger, more-established businesses – and it has examined the issues that all types of Fintech founders face.
Freddy Kelly, CEO and founder of Credit Kudos and a member of the Fintech Founders Steering Committee said: “The recommendations in today’s report, together with progressive and agile regulation, can ensure fintech can continue to thrive, game-changing solutions can continue to be developed, and the UK can remain leader of the pack.
“Fintech is the lifeblood of the UK start up and scale-up sectors and it can play an integral role in the post-pandemic recovery – not only for the economy but by providing alternative innovative solutions to support individuals and small businesses struggling financially. The recommendations to create coalitions to progress Open Finance and support fintechs to further support small businesses, as well as ensuring fintechs and incumbents prioritise financial inclusion, are key parts of this puzzle.”
Charlie Delingpole, CEO and founder of Comply Advantage, another member of Fintech Founders Steering Committee, welcomed the Review’s call for a new visa fast track scheme: “At present, hiring the best talent can be a costly and timing consuming process, so any additional simplification and cost reduction is enormously welcome. Similarly, improving access to a much deeper pool of talented engineers is also welcome.”
Initiatives of the past decade have helped build the Fintech sector that we have today - but a fresh approach is now required. Other countries are fast catching up and, in too many areas, innovation is being stifled in a landscape skewed heavily towards incumbents.
Fintechs can and should be unleashed to drive competition and deliver better outcomes across the financial services sector. This will require a new approach to regulating the sector. The UK economy – and in particular UK consumers – will be the winners if this happens.
We urge the Government to consider the recommendations within this review as a matter of priority.