Janine Hirt
CEO, Innovate Finance
This year is shaping up to be a critical year for both UK and global fintech, as we face an ever-evolving landscape of geopolitical, regulatory and technological changes.
With these fintech shifts come new challenges, but also huge opportunities to accelerate the growth of the sector. If the UK is to maintain its international leadership in financial innovation however, we must act quickly and decisively on progressing a number of key areas.
UK fintech leadership challenge
The UK remains the second-largest fintech hub globally, following only the United States, and is the undisputed leader in Europe.1 However, as highlighted in Innovate Finance’s recently released FinTech Investment Landscape 2024, other hubs around the world are catching up fast. Countries are investing heavily in their fintech ecosystems, and we must not become complacent if we want to remain a top destination for investment and innovation in financial services.
Bold and urgent action is needed now
to ensure the UK retains its competitive edge.
Priorities in UK fintech
Bold and urgent action is needed now to ensure the UK retains its competitive edge. Progressing the open banking and open finance agendas, delivering on the Mansion House compact and pushing forward on key areas like stablecoins, crypto and digital assets are essential.
Equally important is fostering a ‘tech-positive’ regulatory environment that is agile and able to keep pace with the rapid advancements in the sector. Moreover, the full potential of artificial intelligence must be harnessed to drive efficiency and innovation.
National growth opportunity
Fintechs have democratised financial services and put the consumer back at the heart of the sector through aiding small businesses and individuals and driving greater financial equality and inclusion. However, if we are to unleash the full power of financial innovation as a driver of growth across the country, it is critical that industry, government and regulators work together to realise the vision of the UK being the best place in the world for fintechs to start, grow and scale. The time for forward progress, delivery and positive change is now — let’s not miss this opportunity.
[1] Innovate Finance (2024), FinTech Investment Landscape 2024.
