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Evening Standard
Evening Standard
Business
Janine Hirt

Why we're fighting to keep London first for fintech

London has emerged over the last 15 years as a global leader in fintech. Our UK fintech sector receives more investment than any other country in the world, bar the United States, and more than all of the rest of Europe combined.

More importantly, it is our community of world-leading UK fintechs that are putting the consumer back at the heart of the industry, making financial services more inclusive, more democratic, more effective, and better for everyone. However, our international leadership must not be taken for granted, and we must continually push forward with driving an environment here in the UK that allows our most promising FinTech companies to grow, scale, and ultimately list here, for the benefit of both the sector and wider society - and the launch today of the Unicorn Council for UK FinTech (UCFT) by Innovate Finance marks a pivotal moment in cementing this leadership.

The UCFT is not merely a forum; it is a powerhouse coalition of the CEOs of the UK's most successful fintech unicorns and ‘soonicorns’. Co-chaired by myself at Innovate Finance, Philip Belamant, CEO of Zilch, who played a significant leadership role in bringing this initiative together, and Charles McManus, CEO of Clearbank, Council members are the trailblazers at the forefront of a sector that is crucial to the UK's economic fabric, contributing significantly to productivity and growth. Despite a challenging investment climate in 2023, the UK's fintech sector has shown remarkable resilience, underscoring the sector's robust foundation, our outstanding community of entrepreneurs, and the global confidence in the UK as a FinTech leader.

The UCFT's mission is to provide the government with key policy recommendations that safeguard and enhance the UK's global FinTech leadership, and address the investment and growth challenges that lie ahead. With direct access to senior government officials and ministers, the Council is uniquely positioned to shape policies that foster an environment conducive to scaling and growth, thereby attracting more investment and enhancing the UK's international competitiveness.

By ensuring the continued growth and success of the fintech sector, the UCFT is helping to build a more equitable and resilient financial system.

But why does this matter? At its core, the Council's work is about more than just supporting fintech companies. It is about securing the future of the UK economy. Fintech innovations drive efficiency and inclusivity in financial services, making them accessible to a broader segment of the population. By ensuring the continued growth and success of the fintech sector, the UCFT is helping to build a more equitable and resilient financial system.

In the aftermath of the 2008 financial crisis, the first wave of fintech entrepreneurs emerged to bring trust and resilience back into the sector - many of these companies are today’s fintech unicorns. Following the Covid pandemic and the cost of living crisis, all eyes were focused once again on the power of technology and innovation as the FinTech community stepped in to help all of us navigate through unprecedented challenges.

Now, with heightened geopolitical instability across the globe, and more than 40 elections happening around the world this year, including a forthcoming UK General Election, we are at another critical juncture. Important decisions need to be made in the coming months and years which will shape the next 15 years for the UK, and the Council will provide the Government with expertise, direction and challenge to promote the next phase of innovation and growth across our country. This will include how the UK can innovate and regulate successfully groundbreaking new technologies such as AI (and we look forward to working in collaboration with the Startup Coalition on their non-fintech focused Unicorn Project).

The Unicorn Council's work is instrumental in sending a clear message to the world: London remains a premier destination for fintech innovation and investment. These unicorns and ‘soonicorns’ are not only transforming financial services for the better, but are creating jobs, fostering innovation, and securing the UK's prosperous economic future. Innovate Finance’s Unicorn Council for UK FinTech is a testament to the collective will of the country's most successful fintech leaders to drive forward a sector that is vital to the UK's economic health - and make sure that the UK remains the best place in the world to start, scale and grow a fintech business.

Janine Hirt is CEO of Innovate Finance

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