The review will be led by Ron Kalifa, former CEO of Worldpay, the Treasury announced today.
The fintech sector is said to be worth around £7 billion to the UK economy and employs around 60,000 in the UK.
The review will help identify the resources the UK fintech sector needs to “grow and succeed,” particularly as the UK recovers from the economic impact of the Coronavirus pandemic.
The Government wants to see widespread adoption of financial technology and to see that the UK’s global reputation for innovation is maintained and advanced.
The FCA has already encouraged fintech ventures with its ‘regulatory sandbox’ approach, allowing firms to pilot new ideas.
Economic Secretary to the Treasury & City Minister John Glen said: “The UK is one of the leading places in the world to start and grow a fintech firm, and I am determined to ensure this continues. The sector is worth around £7 billion to our economy and will therefore be vital in ensuring both that the country bounces back post-Coronavirus, and continues to be at the forefront of financial innovation now we have left the EU.
“This independent review will help us to uphold and enhance our global reputation, support growing firms, and promote the integration of new technologies across financial services to the benefit of businesses and their customers.”
Ron Kalifa said: “Tech-based solutions in financial services have experienced wide scale adoption in the UK, with growth fuelled by a favourable startup environment that supports entrepreneurship and innovation.
“This review will ascertain what is required to accelerate this change, to create a financial services ecosystem that is above all, sustainable, inclusive and world leading.”
The Government believes technology has a “vital role” to play in the UK’s Covid-19 economic recovery.
The review was first announced at Budget 2020. The first meeting of the fintech review governance board took place today, attended by John Glen with Ron Kalifa as chair assisted by a secretariat led by Innovate Finance and City of London Corporation.
Five workstreams will provide recommendations on: skills and talent, investment, national connectivity, policy, and international attractiveness. The review will be independent and is expected to report back to HM Treasury at the start of next year.
The UK fintech sector attracted £4.1bn in venture capital in 2019, and the market has been estimated to have grown by nearly 70% since 2015, according to the Treasury.