The ’levelling up’ of FinTech is more within our reach than ever before
The Kalifa Review of FinTech was finally released in late February 2021 with a significant focus on the importance of national connectivity for realising the UK’s potential from this vibrant sector. Birmingham and the wider West Midlands was recognised as an established hub for FinTech, raising national awareness of our region as a key national asset for driving jobs, trade and investment.
SuperTech lead a response to Government in advance of their first formal response to the Kalifa Review during UK FinTech Week. Consulting with regional FinTech businesses in March, SuperTech submitted a letter to the Chancellor, calling on the Government to enact the recommendations made in the report, particularly in relation to national connectivity. Signatories from financial advisors Wesleyan and startup incubator MillionLabs – both SuperTech’s FinTech leads – alongside the Greater Birmingham & Solihull Local Enterprise Partnership (GBSLEP) and the West Midlands Growth Company, have written to Treasury offering the region’s collective support to shape the sector’s future policy agenda.
Our letter emphasised the findings of the Kalifa Review of Birmingham as an established hub and offered our assistance in realising the vision “UK FinTech" landscape where the whole is greater than the sum of its parts.” We expressed our collective endorsement and willingness to support the recommendations in the Kalifa Review of UK FinTech. SuperTech urged Government to give due consideration to:
Kalifa’s observation and challenges as to how clusters in English regions can accelerate growth equivalent to case study examples in devolved nations.
Funding & resources at a sub-national level of the recommended three-year strategies for regional clusters. The West Midlands is the only English region to be investing in its FinTech cluster development through Local Industrial Strategy resources; this funding is limited, time-bound and there is little evidence of a clear framework to support local leadership in some of the UK’s most innovative regions like ours.
The evolution of the role of the FinTech Envoys to be more consistent in their geographical representations and aligned with the hubs identified by the Kalifa Review.
We share that same vision and outlined our enthusiasm to play a leading role in strengthening the UK’s position as a first-choice location for FinTech and Financial Services. SuperTech is now actively developing its strategy and work with partners to leverage the opportunity accordingly.
What did the Chancellor announce during UK FinTech week?
Speaking at Fintech Week, the Chancellor Rishi Sunak set out proposals to enhance the UK’s competitive advantage in fintech, from regulatory support and reforms to help firms grow to a new taskforce to lead the UK’s work on a central bank digital currency.
He outlined three key areas to look at in boosting UK FinTech:
Supporting growing firms and FinTech hubs across the UK
Pushing the boundaries of digital influence
Reforms to listing and capital market rules
In the first point the Chancellor backed the creation of an industry-led Centre for Finance, Innovation and Technology (CFIT) and committed to work with regional and national fintech bodies to make it a reality. The CFIT would work closely with the regional hubs to identify and address sector challenges in support of fintech growth across the UK.
We strongly support this proposition and will be working closely with the FinTech National Network to inform the industry led thinking that leads to implementation.