Freddy Kelly: My ambitions for UK Fintech
When people talk about ‘Fintech’, too often the image that is conjured up is of some complicated, abstract process, removed from daily life and business. This ignores the reality, that Fintech, at its core, is about developing solutions to address challenges that make the way we live and work simpler and more convenient.
My own story, and that of my company Credit Kudos, reflects the focus on building products that work better for both the individual customer and lender, broker, or financial institution using them. When I returned to the UK after working in the US for a number of years, I had a ‘thin’ credit file, not being able to demonstrate any recent financial activity in the UK. This not only meant that I had limited credit options, but those that were available to me came with higher interest rates and restrictions.
After further research it became apparent that I was not alone and that this was a challenge faced by many people in the UK who were simply trying to access affordable credit.
With a vision to remove that challenge from the market, I co-founded Credit Kudos. Since then, the team at Credit Kudos have been on a mission to provide fairer credit for all, harnessing the power of Open Banking.
Fintech start-ups like Credit Kudos are changing financial services, building tech products that are pushing the financial sector into the 21st century. New technologies are helping both consumers and businesses move away from old methodologies, enabling greater choice and competition in the market. In lending, innovation to develop new tools and solutions is now more vital than ever. Lenders need to be able to assess an individual or businesses’ current financial situation so they can continue to lend responsibly, and individuals need access to affordable credit solutions.
Fintech is the lifeblood of the UK start up and scale-up sectors and it can play an integral role, not just in the post-pandemic recovery but in the longer term, by providing alternative innovative solutions to support individuals and small businesses struggling financially. But if we are to continue to deliver on our mission, more competition is needed around the access and use of data in the credit market. With more than 10 million people in the UK currently defined as “non-standard” credit customers, and 75% of these being served through specialist lenders, more and more of us don’t tick the standard boxes, especially as flexible working and self-employment becomes more commonplace.
The recently-launched Kalifa Review’s focus on increased competition and access to data is welcome. The Review contains recommendations around creating coalitions to progress Open Finance and support Fintechs to further support small businesses, as well as ensuring Fintechs and incumbents prioritise financial inclusion. The Government should set out how it will take forward the Review’s findings as soon as possible: as the Review makes clear, the UK’s position as a fintech hub is at risk from growing competition and uncertainty caused by Brexit.
The recent Budget also contained some encouraging announcements, particularly around the launch of a Future Fund to fill the scale-up funding gap for innovative tech businesses, as well as a new, unsponsored high-talent visa scheme for technical and digital skills. But there is still more to do – and further challenges to overcome.
That’s why I joined Fintech Founders – and sit on the Steering Committee – I’m passionate and ambitious for UK fintech, and the potential opportunities it represents for people and businesses across the UK and beyond. By sharing our insights and knowledge as founders and entrepreneurs, as a single voice, we hope to see real, effective change from Government and regulators. UK Fintech has been a real success story. It’s now time to start a new, exciting chapter.