The UK government is launching a “scale-up unit” aimed at supporting and guiding innovative, fast-growing fintechs, banks, and insurers. Unveiled by Chancellor of the Exchequer Rachel Reeves, this initiative will be operated by the Financial Conduct Authority and Prudential Regulation Authority, providing tailored support to help firms navigate regulatory frameworks.
Initially focused on scaling banks and insurers, the unit will also extend its services to fintechs starting next year, ensuring firms receive timely responses to regulatory inquiries and access to expert guidance.
Reeves acknowledged that the multitude of rules complicates operations for scale-ups, stating, “We are helping them cut through the noise, to grow and innovate. That’s how we will boost jobs, enhance growth, and build an economy that works for, and rewards, working people.”
This support follows the government’s earlier commitment to provide intensive assistance for fintechs in their start-up phase, aimed at helping them establish viable concepts and attract growth funding as part of an effort to position the UK as the “fintech capital of the world.”
The government asserts that its initiatives are driving investment into the UK, highlighting Revolut’s £3 billion commitment over the next five years, which is expected to create 1,000 jobs.
However, Revolut founder Nik Storonsky has previously voiced frustration over the ongoing “extreme bureaucracy,” as the company continues to face delays in obtaining a full banking license even after several years.
Despite this, industry leaders have welcomed the new initiative. Richard Davies, CEO of SME lender Allica Bank, remarked, “The new scale-up unit is a positive step that we have actively called for and welcome. It should enable challengers to further support the real economy, providing banks like Allica more capital certainty to boost lending to the SMEs that power local economies.”