During the inaugural day of the Innovate Finance Global Summit 2023, Andrew Griffith MP, the Economic Secretary to the Treasury, delivered a keynote address highlighting the UK government’s vision for the fintech sector.
Griffith emphasized that financial services are fundamental to the UK’s economic landscape, noting the significant role fintech companies play in shaping the future. He remarked that nearly half of Europe’s fintech firms are based in the UK, underscoring the sector’s importance.
In light of the recent Silicon Valley Bank collapse, Griffith reassured attendees that the government remains committed to supporting the fintech industry, prioritizing open lines of communication and swift decision-making to safeguard the sector.
The Treasury recently inaugurated the Centre for Finance, Innovation, and Technology (CFIT) in Leeds, and Griffith announced that its initial focus will be on leveraging open finance to bolster the UK economy. He stated, “Its primary mission is to unite industry stakeholders, entrepreneurs, policymakers, investors, and academics to collaboratively tackle some of the most pressing challenges in the sector.” He was pleased to reveal that CFIT’s first coalition will explore how unlocking financial data can drive benefits for small businesses, entrepreneurs, and consumers.
Griffith remarked that open finance represents a logical evolution beyond open banking. The UK has emerged as a global leader in open banking, boasting over seven million users and achieving more than one billion successful API calls each month, along with a proliferation of new businesses and products.
In his next key announcement, Griffith discussed plans to transition open banking into a sustainable regulatory framework, a shift supported by the Data Protection and Digital Identity Bill currently under parliamentary review. “This move will facilitate open banking becoming a new entity with a fair and equitable funding model, alongside robust corporate governance. Today, we also outlined our strategy to initiate this transition within the year,” he stated.
The Joint Regulatory Oversight Committee (JROC), co-chaired by the FCA and the Payment Systems Regulator (PSR), confirmed that these initiatives will pave the way for innovative products and services, enhancing data sharing and payment processes for consumers and businesses alike.
Griffith further discussed advancements in artificial intelligence and its application within financial services to improve customer interactions, mitigate financial crime, and enhance decision-making processes. He pointed attendees to a recent whitepaper published by the Government that outlines the UK’s strategy regarding AI governance.
Additionally, Griffith announced a substantial investment of £900 million aimed at developing a supercomputer and establishing a national AI research resource.
To conclude his address, Griffith introduced the launch of a new UK Fintech Census, initiated in partnership with the City of London and Innovate Finance. This census will be conducted over five weeks and aims to gather insights from all 2,500 fintech companies across the nation, with plans for it to become an annual endeavor.