Northern Ireland FinTech Envoy Andrew Jenkins
The HM Treasury commissioned Independent Fintech Strategic Review chaired by Ron Kalifa OBE was published today. It recommends a series of measures to support the growth and widespread adoption of the financial technology industry.
The key points are:
At a glance, the review sets out a five-point plan to extend the UK’s competitive edge over other leading Fintech hubs. The focus points are: Policy and Regulation, Skills & Talent, Investment, International Competitiveness and National Connectivity.
Northern Ireland was identified as one of 10 clusters in the UK producing high growth fintechs and as a region with the most potential for further growth and development.
In terms of National Connectivity, the review sets out the roadmap to nurturing the potential of the top 10 Fintech clusters, including Northern Ireland. This can be achieved by driving a national coordination strategy through the Centre for Innovation, Finance and Technology and accelerating growth through further investments in R&D.
On Policy and Regulation, it recommends the establishment of a Digital Economy Taskforce to ensure alignment across government, a digital finance package to create a new regulatory framework for emerging technology and the implementation of a ‘Scalebox’ to support firms focusing on scaling innovative technology.
In the area of Skills, Kalifa advocates for a new visa Stream to enhance access to global talent, access to short courses from high-quality education providers at a low cost and a pipeline of Fintech talent offering embedded work placements in Further Education, Higher Education and Kickstart programmes. The intention is that adults will be retrained and upskilled to support the future of the industry.
Four key recommendations for continued investment are presented. These are: the expansion of R&D tax credits, Enterprise Investment Schemes and Venture Capital Trusts; institutional capital to create a £1bn ‘Fintech Growth Fund’; improvements to the listing environment through free float reduction, dual class shares and relaxation of pre-emption rights and the creation of a global family of Fintech indices to enhance sector visibility.
The review goes on to call for an international action plan and the launch of a ‘Fintech Credential Portfolio’ (FCP) to support international credibility and increase the ease of doing business. Kalifa also suggests an International Fintech Taskforce to drive collaboration.
Welcoming the Kalifa Review, Northern Ireland Fintech Envoy Andrew Jenkins said:
“I very much welcome the Kalifa Review recommendations. I believe they can help shape the future of Fintech right across the UK and serve as a catalyst to further enhance Northern Ireland’s Fintech reputation on a global stage.”
“Throughout the review process I ensured the voice of Northern Ireland’s Fintech sector was heard and believe the report supports the levelling up agenda for regional investment and innovation. Recent years have seen Belfast established as an attractive international investment center that punches well above its weight due to talent excellence, a cost-effective infrastructure and strong network of academic partnerships.”
“The review brings an opportunity to leverage these assets and ensure greater connectivity across the UK. It is a welcome commitment to training and upskilling our workforce and futureproofing Fintech talent for years to come.”