A new Fintech manifesto ‘UK FinTech 2020’ has been released as UK Prime Minister David Cameron voiced his support, leading a trade delegation of British FinTech leaders, including bitcoin wallet provider Blockchain, to South East Asia.
The manifesto, released by the independent membership association for the global FinTech (financial technology services) sector, Innovate Finance, has some ambitious goals including securing London’s position as the world’s FinTech capital and creating 100,000 jobs.
UK Prime Minister David Cameron has expressed his support for the initiative:
“This government wants the UK to be the leading FinTech centre in the world, that’s why, at the Summer Budget, we appointed a Special Envoy for this fast growing sector. I’m pleased that Innovate Finance’s manifesto has set such ambitious goals including the creation of 100,000 jobs. This will ensure we are a world leader in the development of financial services technologies.”
Innovate finance’s members range from the most promising pre-seed startups to the world’s leading global corporations and cover a range of verticals. It aims to help lead the UK into being the undisputed center for fintech and innovation and has successfully received the support of the UK Government.
The goals of Innovate Finance for 2020 will focus on 3 key points:
For the UK to become the most accommodating environment for FinTech globally, attracting US$4 billion of venture investment and US$4 billion of institutional investment in corporate venture funds, accelerators and innovation programs.
This is up from a UK total of US$623 million in 2014.
2. Global FinTech Leader
For the UK to become the premier location for at least 25 global FinTech leaders, whether by IPO, global market share or by valuation. The success of this target will be supported by proportionate and effective regulation, a proactive policy environment and a commitment to greater financial inclusion.
For the UK to increase investment in FinTech and develop more global leading companies that will generate 100,000 more jobs in UK FinTech. This will be supported by new FinTech apprenticeships and degree courses that will create the skilled workforce necessary to make the UK the global center for FinTech.
UK’s FinTech Push
FinTech already generates £20bn for the UK economy and directly employs 135,000 people. According to industry reports, the UK is only at the start of this dramatic transformation to financial services. Goldman Sachs predicts that a further US$4.7 trillion in revenue for traditional financial services is at risk of being displaced globally by new technology-focused entrants.
The UK has been leading the way in Europe for FinTech investment. It has taken 42% of all European FinTech investment in 2014. Investment grew 136% in 2014, from US$264m in 2013 to US$623m in 2014. Despite this, Silicon Valley still dominates, with FinTech investment at over US$2bn versus a European total of US$1.48bn.
Chairman of Innovate Finance, Alastair Lukies CBE, said:
“The UK has a critical role to play in ensuring financial inclusion, common standards, continued innovation and socially enhancing services for all.”
UK Government’s trade mission to South East Asia this week that will see £750m in business deals signed, alongside a significant delegation of FinTech firms from across the UK, should be a step in the right direction to achieving the manifesto’s goals.