Prime Minister David Cameron has backed Innovate Finance’s fintech manifesto 2020 which has been launched today.
The manifesto sets out ambitious goals for the UK to be the undisputed centre for financial services technology and innovation. It calls on the government to continue its support for the sector and to back initiatives that will attract global investment, world leading companies, and future fintech jobs to the UK.
The manifesto is released as Prime Minister David Cameron leads a trade delegation of British fintech leaders to South East Asia this week.
Innovate Finance’s vision for 2020 is:
· Investment: For the UK to become the most investment-friendly environment for fintech globally, attracting $4bn of venture investment and $4bn of institutional investment in corporate venture funds, accelerators and innovation programmes. This is up from a UK total of $623m in 2014.
· Global fintech leader: For the UK to become the premier location for at least 25 global fintech leaders, whether by IPO, global market share or by valuation. The success of this target will be supported by proportionate and effective regulation, a proactive policy environment and a commitment to greater financial inclusion.
· Jobs: For the UK to increase investment in fintech and develop more global leading companies that will generate 100,000 more jobs in UK fintech. This will be supported by new fintech apprenticeships and degree courses that will create the skilled workforce necessary to make the UK the global centre for fintech.
The Prime Minister said: “This government wants the UK to be the leading fintech centre in the world, that’s why, at the Summer Budget, we appointed a Special Envoy for this fast growing sector.
“I’m pleased that Innovate Finance’s manifesto has set such ambitious goals including the creation of 100,000 jobs. This will ensure we are a world leader in the development of financial services technologies.”
The UK’s opportunity to lead
Fintech already generates £20bn of GDP to the UK economy and directly employs 135,000 people. According to industry reports, the UK is only at the start of this dramatic transformation in financial services. Goldman Sachs predicts that a further $4.7trn in revenue for traditional financial services is at risk of being displaced globally by new technology-focused entrants.
The UK is leading the way in Europe for fintech investment, taking 42% of all European fintech investment in 2014. Investment grew 136% in 2014, from $264m in 2013 to $623m 2014. Despite this, Silicon Valley still dominates, with fintech investment at over $2bn versus a European total of $1.48bn.
Alastair Lukies CBE, chairman of Innovate Finance, said: “Utilising the increasingly global reach of technology, financial services are now becoming truly available to all consumers in all economies around the world.
“The UK has a critical role to play in ensuring financial inclusion, common standards, continued innovation and socially enhancing services for all. Today’s manifesto for 2020 states the UK’s intentions to be a global leader in fintech, underpinning the important progress of this borderless market for generations to come.”
The UK government’s trade mission to South East Asia this week highlights the importance of fintech both to the country and the global economy.
Cameron is travelling with 31 business leaders from across the UK and includes a significant delegation of fintech firms, including Al Lukies and Innovate Finance member firms Ratesetter, and iwoca.