CEO Blog
I was reflecting over the weekend on a number of key events and announcements that have taken place in recent weeks and their potential to shape the UK payments Eco Systems for years to come.
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Firstly, I was fortunate enough to be able to participate in British Patient Capitals annual Investment Forum.
Running a remote first company with clients across UK, Europe and the US and with employees in 26 countries across UK, Europe, North America and South America - it was an interesting chance to reflect on a view from the UK. Fintech remains a powerhouse for the UK economy, a differentiated industry, and one which has the potential for material growth, as startups from the last 5-10 years reach scale and internationalise. It was extremely encouraging to see the sector called out in the British Growth Partnership specifically, bringing together the capital need from the private sector and public sector on that journey. It was also a chance to reflect on some of the unique characteristics of the UK market which has helped to fuel the formation and growth. Access to critical talent from the broader (and world leading) financial services sector, strong government support through the R&D tax credit regime and a regulatory environment which has leant into the sector is a powerful combination and a great foundation for next steps.
Secondly, the Chancellors Mansion House Speech. From my perspective this was a positive build out on that underlying position. Whilst it is true that getting to the current position has been a remarkable and positive achievement for the sector - there are barriers to its scaling to increased relevance - not least in our ability to drive that success internationally - and I was heartened by the Chancellors speech. It is disappointing that high growth businesses in critical sectors for economic growth, like fintech, have access to aggregated pension funds and scaled sovereign wealth funds investment from across the world at levels which are more accessible than from our own domestic market - it was right to be called out, and it is right that we look to unlock this. It was also right to call out that the forward looking regulatory regime that we have in the UK has helped us reach this point, but, has in the process also become complex - and in the field of payments and the adoption of cloud first tech, has not enabled the competitive advantages being built in the UK as much as it could. Finally, I think it is right that we evaluate risks with a growth mindset across the industry - there is no question that security, and resilience are essential table stakes, but over the years it has also become the case that new tech can be safer, more resilient AND be the enabler of growth - far more than the legacy infrastructures of old.
Thirdly the publication of the New Payment Vision by HMT. This was the first document I have seen which clearly calls out a direction of travel for the market which can leverage both the public and private sectors. It balanced the need for focus on user experience with the manifest requirement that the building blocks that underpin it must also be present in the form of enhanced infrastructure, aligned regulation, consumer access and protection, with a focus on delivery. These are all critical areas - and the historic approach of looking at these in isolation has cost us years in forward momentum. The positive news is that they are all areas where the expertise and capabilities which built the financial services strength of the UK and gave birth to the fintech industry are in abundance - they just need to be harnessed.
Of course there will be arguments for going further.
But - right now is the time to unlock the capital, instigate an open dialogue on risk, get the delivery vehicles we need moving forward quickly - and to take all of these positive intentions and convert them into the momentum which the UK needs to fuel its economic growth, and deliver its critical social agendas.
It's an exciting time to be in UK Fintech, and to be on a mission to power the future of payments!