UK Budget puts fintech front and centre

UK Budget puts fintech front and centre

The UK Government is to undertake a review of the country's booming fintech scene, promising increased funding and support for the sector in today's Budget statement.

The review will be led by Ron Kalifa, chairman of payments firm Network International and a non-executive director at the Bank of England and Transport for London.

The announcement comes amid a gloomy backdrop, with Brexit tensions raising fears of a fintech brain-drain, and the Coronavirus outbreak hitting growth prospects.

Charlotte Crosswell, chief executive of industry body Innovate Finance, says: “We are at a crucial moment in fintech’s development. UK companies are now entering a phase of maturity that requires action to ensure that entrepreneurs can not only establish and scale their businesses in their home market, but also export their products and services internationally.”

The UK's burgeoning fintech scene attracted $48.5bn of investment in 2019 according to KPMG, almost double the $25.4bn injected into the sector a year earlier.

Franz Doerr, founder and CEO of flatfair, said: "I welcome the Chancellor's announcement to support the UK’s world-leading fintech sector. Making sure the UK is primed to incubate and host fintech companies will only help the sector keep attracting the much needed capital from venture funds and private equity that is so vital for its growth."

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