Public servants in the UK are largely unfamiliar with blockchain technology and see little use for it in the current financial system, according to a recent survey.
The UK Public Sector Fintech and AI Awareness Study, conducted by Global Government Fintech, indicates that anti-fraud measures and digital ID are viewed as the most significant fintech developments for the public sector. These areas are followed by innovations in payments, green finance, and procurement and supplier advancements.
Despite the buzz around emerging technologies in the fintech sector, their impact on UK public servants appears limited. Among the 287 respondents, application programming interfaces (APIs), artificial intelligence (AI), and blockchain/DLT were rated as the least important developments.
Fraud remains a pressing issue, costing the public sector billions annually through tax evasion, procurement fraud, and benefits fraud. To combat this, the government has initiated a four-year plan, the Counter Fraud Functional Strategy 2024-2027.
Digital ID is also a government priority, with efforts led by the Office for Digital Identities and Attributes. Payments innovation is deemed crucial for the success of open banking in the UK.
When asked to rate their familiarity with various fintech themes, respondents showed high awareness of fraud, digital ID, and payments. In contrast, central bank digital currencies and blockchain/DLT received the highest number of responses indicating a lack of familiarity. This observation comes despite several trade bodies urging the UK’s prime minister to promote a “crypto and blockchain push” across the country.