HM Treasury Launches Strategic Review of Fintech Sector
HM Treasury launched a review into the financial technology industry of UK to identify opportunities to support further growth in the sector. The Independent Fintech Strategic Review will identify priority areas for industry, policy makers, and regulators to support the ongoing success of the UK fintech sector. The review will consider how the UK can continue to foster innovation, maintain an ecosystem that supports growing firms, and promote the integration of new technologies across financial services. The review will make recommendations addressing three objectives that involve enabling growth, widespread adoption of fintech solutions, and advancing the international reputation of UK fintech. The review will be performed independently and will report to the HM Treasury with recommendations in 2021.
The review will run five workstreams, with each workstream being led by experienced financial services and fintech professionals. Each workstream will ultimately make up to three recommendations and each recommendation will seek to advance one or more of the objectives of the review. The five workstreams are:
- Skills and Talent—The review will make recommendations for building a robust and diverse UK workforce qualified in areas relevant to emerging financial trends, through developing a domestic skills base and addressing barriers to attracting foreign talent.
- Investment—The review will make recommendations for diversifying the UK investment landscape and addressing the challenges to attracting growth funding.
- National Connectivity—The review will make recommendations for supporting the growth of regional fintech through improving intra-region connectivity and leveraging the strengths of other fintech hubs.
- Policy—The review will make recommendations for enabling and fostering wider adoption of innovation, including supporting cooperation between fintech and financial institutions, while promoting competition.
- International Attractiveness and Competitiveness—The review will make recommendations for promoting UK solutions to overseas markets and support international exports and for promoting UK as a key market to establish and grow a fintech company.
The UK has established a world-leading fintech ecosystem, largely due to strong government support, a forward-leaning approach to regulation, and access to skills and capital. The government recognizes that now is the time to build on this success; the COVID-19 crisis has shown that further work needs to be done to increase mainstream adoption of technology solutions and to enhance the resilience of UK fintech.
Keywords: Europe, UK, Banking, Fintech, Strategic Review, HM Treasury
Previous ArticleEC Authorizes Reinsurance Scheme to Support French Credit Insurance
NGFS Updates Address Short-Term Climate Scenarios and Transition Plans
The Network for Greening the Financial System (NGFS) is exploring the development of short-term climate scenarios to complement its existing scenario framework of long-term climate scenarios.
ISSB Updates Address ESG Issues while IASB Consults on Impairments
The International Sustainability Standards Board (ISSB) is seeking feedback, until August 09, 2023, on the exposure draft that sets out the methodology proposed by ISSB to amend the Sustainability Accounting Standards Board (SASB) Standards' metrics
OSFI to Review Liquidity Adequacy Guidelines and Policy Architecture
The Office of the Superintendent of Financial Institutions (OSFI) is consulting, until June 21, 2023, on a review of the liquidity treatment provided in the Liquidity Adequacy Requirements (LAR) Guideline for wholesale funding sources with retail-like characteristics.
ESRB Publishes Report on Cryptos and DeFi; ECB Updates on Digital Euro
The European Systemic Risk Board (ESRB) published a report that outlines the systemic implications of crypto markets and proposes policy options to address the risks stemming from crypto-assets and decentralized finance or DeFi.
EU Agencies Issue Updates on DORA, ESAP, and Crowdfunding Regulation
The European Supervisory Authorities (ESAs) published a discussion paper on their joint advice to the European Commission (EC) on proposals to specify criteria for critical information and communication technology (ICT) third-party service providers
ESAs Propose ESG Disclosure on STS Securitization, Issue Other Updates
The Joint Committee of the three European Supervisory Authorities (ESAs) proposed to amend the Implementing Regulation 2016/1799 on the mapping of External Credit Assessment Institutions' (ECAIs) credit assessments.
UK Authorities Issue Updates, Finalize Policy on Model Risk Management
The Prudential Regulation Authority (PRA) finalized the model risk management principles for banks, the policy statement PS5/23 on risks from contingent leverage, and PS4/23 on moving senior managers regime forms from the PRA Rulebook.
APRA Revises Implementation Timeline for Operational Risk Standard
The Australian Prudential Regulation Authority (APRA) updated the implementation date of the new cross-industry prudential standard CPS 230 on operational risk management
BCBS Consults on Basel FAQs and Amendments, Issues Other Updates
The Basel Committee on Banking Supervision (BCBS) published a report assessing implementation of the global Basel standards on net stable funding ratio (NSFR) and large exposures (LEX) in South Africa
EBA Announces Multiple Regulatory and Reporting Updates in April 2023
The European Banking Authority (EBA) published consultations on the amendments to the guidelines on risk-based anti-money laundering and countering the financing of terrorism (AML/CFT) supervision