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Labour would ‘unlock full potential of fintech’ says MP

Labour fintech Image credit: chrisdorney via Shutterstock

A Labour government would seek to “unlock the full potential of fintech”, according to the shadow economic secretary to the treasury.

At the Innovate Finance Global Summit 2023, Labour MP Tulip Siddiq said her party would look to drive larger investments into the fintech sector if elected.

Siddiq said she would be committed to addressing the issues that have impacted the recent growth of fintech, including a shortage of new talent, a slowdown in investment and regional inequity.

According to the MP for Hampstead and Kilburn, Labour would look to accelerate the “pulling of pension cash” to be “directed towards high-growth startups” to plug the “multibillion-pound funding gap facing the sector”.

In recent years fintech has been one of the biggest draws for investor cash in the UK tech industry. However, the downturn that started last year hit the sector’s funding.

Funding for UK-based fintech startups last year dropped by 13% compared to the year prior, with a particular decline in late-stage investments.

Siddiq added that a Labour government would incentivise “local government pension schemes” to invest in regional fintech companies as a way to encourage sectorial growth across the whole of the UK, instead of just the fintech hub of London.

“We as a Labour Party are committed to fostering and building on the UK’s key advantages that underpin our status as a global centre of FinTech,” Siddiq added.

“Whether that’s the competitiveness of our financial services sector, our high regulatory standards or access to a highly skilled workforce, rest assured, Labor’s ambitions for your industry won’t stop just there, we will work with you to unlock the full potential of fintech.”