UK Prime Minister David Cameron has lent his support to a fintech manifesto issued by industry think tank Innovate Finance which lays down a bold vision for the country to become a dominant force in financial technology investment and job creation globally.
Global investment in fintech-related activity has tripled in the last year from $4billion to $12billion across more than 730 deals and projections for annual global investment to reach $46bn in 2020
With Goldman Sachs' recently forecasting that $4.7 trillion in revenue for traditional financial services is potentially at risk of being displaced globally by new technology-enabled entrants, Innovate Finance has outlined a blueprint to ensure that the UK remains at the forefront of the investment wave.
"Our vision for 2020 is for the UK to be the most investment-friendly environment for fintech globally, attracting $4 billion of venture investment and $4 billion of institutional investment in corporate venture funds, accelerators and innovation programmes," states the document. "This is up from a UK total of $623 million in 2014."
The UK is currently home to two FinTech ‘unicorns’ that are valued at over $1 billion: TransferWise and Funding Circle. Innovative Finance argues that by 2020, the country could be home to 25 such technology leaders, given the right investment in skills, tax incentives and regulatory treatment.
Speaking at the UK government’s trade mission to South East Asia this week, Cameron welcomed the manifesto: “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."