Kalifa Review Of UK Fintech

HM Treasury commissioned an independent review of the UK’s Fintech sector. Chaired by Ron Kalifa OBE, it was announced during Chancellor Rishi Sunak’s budget in March 2020. Innovate Finance have provided the secretariat alongside our colleagues at the City of London Corporation. Over the past decade, the UK has been quietly undergoing a quiet fintech revolution – in jobs, innovation, improvements to people’s lives and in the country’s ability to compete on the global stage – and today is a leading global fintech hub. The Kalifa Review provides a clear strategy and delivery plan to ensure the UK can capitalise upon the opportunities fintech presents. This will enable the UK to move from being a global leader in fintech start-ups, to the best place to scale a business, and take solutions from IP creation through to widespread adoption. That is when the full impact and opportunity of a thriving fintech sector will be realised.

read the review

Co-Secretariat

“Fintech is one of the UK’s great success stories and will help us seize new opportunities around the world. We must now build on our global reputation for fostering innovative start-ups and ensure firms can access the talent, finance and support they need to scale up here in the UK. This review will make an important contribution to our plan to retain the UK’s fintech crown, create more skilled jobs, and deliver better financial services for people and businesses.”

Rishi Sunak, Chancellor of the Exchequer

“Innovate Finance welcomes the timely contribution of the Kalifa Review. This is a vital intervention that has the potential to set the strategic direction of UK fintech for decades to come. The sector has seen incredible growth, and fintech firms across the UK are ambitious in building, developing and scaling their businesses.

The way that consumers and businesses are interfacing with financial services is rapidly evolving. We must respond to this changing dynamic and ensure we look to the fintech sector to advance these solutions. This will result in the creation of new digital jobs, inspire a next generation of entrepreneurs, and in turn enable the growth of global champions. The UK attracts the founders behind some of the world’s most innovative businesses, so we must show that we remain an ambitious partner in a sector where we have been at the forefront of global thought leadership.

We look forward to supporting the implementation of Ron Kalifa’s recommendations and strategy over the coming months.”

Charlotte Crosswell, CEO of Innovate Finance

“Fintech has the power to change lives, both in terms of job creation and better wages that are so essential to our recovery; and making financial services more accessible and relevant to people’s lives.

Britain has a proud record of starting-up and scaling-up some of the best known fintech products such as Funding Circle and TransferWise, but we cannot rest on our laurels. The next powerhouses will not be created by accident. “We know that many nations are eyeing up the chance to poach Britain’s market share, but this is not inevitable.

Britain must not miss the opportunity to become a dominant player in the fintech industry. We must continue to nurture our start-up culture, but crucially we must also give our high growth firms the support to become global giants.

With the right reforms that encourage entrepreneurialism, investment and make it easy to attract and invest in talent, Britain can usher in a period of dominance that can help us build back better from Covid-19.”

Ron Kalifa OBE

Rishi Sunak, Chancellor of the Exchequer

We look forward to supporting the implementation of Ron Kalifa’s recommendations and strategy over the coming months.”

Charlotte Crosswell, CEO of Innovate Finance

Ron Kalifa OBE

Rishi Sunak, Chancellor of the Exchequer

Recommendations At A Glance: 5 Point Plan

Policy and Regulation

Deliver a digital finance package that creates a new regulatory framework for emerging technology
Implement a “Scalebox” that supports firms focusing on scaling innovative technology
Establish a Digital Economy Taskforce (DET) to ensure alignment across government
Ensure that fintech forms an integral part of trade policy

Skills

Retrain and upskill adults in support of UK fintech by ensuring access to short courses from high-quality education providers at low cost
Create a new visa Stream to enhance access to Global Talent for fintech scaleups
Build a pipeline of fintech talent by supporting fintech scaleups to offer embedded work placements to Further Education and Higher Education students and Kickstarters

Investment

Expand R&D tax credits, Enterprise Investment Scheme and Venture Capital Trusts
Unlock institutional capital to create a £1bn “Fintech Growth Fund” of sufficient scale to act as the catalyst in developing a world leading ecosystem
Improve listing environment through free float reduction, dual class shares and relaxation of pre-emption rights
Create a global family of fintech indices to enhance sector visibility

International

Deliver an international action plan for fintech
Launch an international “Fintech Credential Portfolio” (FCP) to support international credibility and increase ease of doing business
Drive international collaboration through the Centre for Innovation, Finance and Technology, and launch an International Fintech Taskforce

National Connectivity

Nurture the high growth potential of the top 10 fintech clusters
Drive national coordination strategy through Centre for Innovation, Finance and Technology
Accelerate the development and growth of fintech clusters through further investment such as R&D

read the review

read the press release

Views from the ecosystem

“The pandemic has accelerated the adoption of online lending and shown how critical FinTech lenders are in supporting SMEs. We believe this shift is permanent, and the sector will have a vital role to play in the UK’s national recovery. We welcome this timely and important strategic review, and look forward to working with Ron Kalifa, and HM Treasury to ensure UK fintech continues to transform the customer experience.”

Lisa Jacobs, Managing Director, Funding Circle Europe

“It’s great to see the Treasury seeking to support and improve the UK’s position on the world stage as a growth platform for tech companies in financial services. This review, conducted by Ron Kalifa, is a brilliant opportunity to keep modernising the regulatory environment. This should lead to even more competitive products and better services for consumers, both here in the UK and beyond the borders.”

Kristo Käärmann, TransferWise CEO

“At Monzo, we are proud to be part of an industry that is always working to change finance for the better and give consumers more options. It is why we are supportive of these recommendations which would help the next generation of financial technology companies get off the ground, while enabling established companies, like Monzo, to take it to the next level.”

TS Anil, Monzo CEO

Lisa Jacobs, Managing Director, Funding Circle Europe

Kristo Käärmann, TransferWise CEO

Lisa Jacobs, Managing Director, Funding Circle Europe

International

Investment

Policy

National

Skills

Inclusion/Adoption

Growth and Success

Watch The Launch Event

Watch the launch event of the HM Treasury commissioned Fintech Review led by Ron Kalifa.

Co-Secretariat