Philip Hammond unveils string of measures to bolster growing fintech industry | City A.M.
Philip Hammond has unveiled a new fintech strategy as the government looks to bolster the growing sector ahead of Brexit.
The chancellor this morning unveiled a string of measures, including a move towards automating regulatory compliance which he said would help by “reducing costs for financial services firms and removing a key barrier for fintechs”.
The strategy also includes a new code of industry standards, designed to make it easier and cheaper for fintechs to partner with established financial service providers. The government will also appoint envoys to England, Wales and Northern Ireland “to promote the adoption of fintech by regional banks and building societies, complementing the work of the existing Scottish envoys”.
As trailed, Hammond also revealed a new “fintech bridge” to Australia, following existing links with Singapore, China, Korea, and Hong Kong. This will commit governments and regulators to collaborate on supporting growth and investment in fintech across markets.
Hammond said: “This is our most ambitious collaboration to date, bringing together regulators, policy-makers and private sector leaders to collaborate on growing our respective fintech markets in tandem.”
Other measures include changes to the Enterprise Investment Scheme (EIS), which will make it easier to invest in high-growth and knowledge-intensive firms, and a £500m programme launched by the British Business Bank in May to invest in a series of funds “to encourage co-investment by leading institutional investors in those businesses”.
The BBB will also launch a British Patient Capital investment fund later this year, which will co-invest with the private sector “to unlock £7.5bn of public and private investment”.
Hammond said: “Britain is, and will remain, a great place to do business. It is the global capital for finance, fintech, and a major hub of fourth industrial revolution technologies. My priority as chancellor is to go on pushing us to do even better.
“We will go on creating the conditions and providing the resources that have allowed pioneers from Charles Babbage to Ismail Ahmed to succeed. Because fintech offers the chance to connect the world, to deliver financial services and innovations that can drive widespread growth and prosperity, create millions of jobs, and build stronger, fairer, faster financial services that serve the common interests of all the peoples of this interconnected planet.
“My commitment to you is that Britain will continue to drive this agenda, will continue to be the best place for fintech to thrive. Because, fintech is the future of global finance and working together, we have a chance to reach that future faster.”