The new UK government will prioritize fintech and sustainable finance as vital growth opportunities in the financial services sector, according to Chancellor of the Exchequer, Rachel Reeves.
In her inaugural Mansion House speech, Reeves announced plans for the government to release the first-ever Financial Services Growth and Competitiveness Strategy in the Spring. This strategy aims to provide long-term certainty and solidify the sector’s role within the government’s 10-year industrial strategy.
The initiative will target five key growth areas: fintech, sustainable finance, asset management and wholesale services, insurance and reinsurance, and capital markets. To ensure industry input is integral to the new strategy, a Call for Evidence will be published alongside the announcement.
Additionally, Reeves addressed the issue of increasing fraud on technology and telecom platforms, urging these companies to act “further and faster” to combat the problem. APP fraud has surged recently, with UK losses exceeding $500 million in 2023. To address this, regulators introduced new rules last month requiring banks to reimburse victims of APP fraud in most cases.
UK banks have been advocating for greater accountability from big tech, social media, and telecom companies regarding the fraud that stems from their platforms. According to UK Finance, 76% of APP fraud occurs online, with another 16% originating in the telco sector. The government has requested progress updates from these sectors by March 2025, ahead of a broader fraud strategy.
Reeves also confirmed the government will introduce the National Payments Vision, which will focus on advancing Open Banking and supporting fintech initiatives. This has been in development for almost a year and includes the establishment of the Private Intermittent Securities and Capital Exchange System (Pisces), a regulated market for private company shares.
Additionally, a pilot program will be initiated to develop a Digital Gilt Instrument utilizing distributed ledger technology.
Kelly Mathieson, Chief Business Development Officer at Digital Asset, praised the developments, stating, “Rachel Reeves is right to recognize that the UK must modernize the technology underpinning the £2.5 trillion gilt market to ensure it remains competitive. Connecting these assets to a digital infrastructure shows that tokenizing gilts can enhance collateral mobility, improve liquidity, and increase transactional efficiency.”