Andrew Griffith MP, the Economic Secretary to the Treasury, delivered a keynote address on day one of the Innovate Finance Global Summit 2023, where he articulated the Government’s aspirations for fintech.
At the start, Griffith emphasized that financial services are an essential part of the UK’s economy and its prosperity. Moreover, he highlighted the significant role the fintech industry has in what lies ahead for Britain, noting that almost half of all European fintech have their roots in the United Kingdom.
Griffith highlighted that the Government is dedicated to helping the fintech industry by being open and approachable to make prompt decisions following the recent crash of Silicon Valley Bank. Additionally, they are devoted to shielding the UK’s fintech sector.
Griffith unveiled the first of three major declarations at his session and revealed that the Treasury concentrates on how available Finance can benefit the UK economy. They have recently set up the Centre for Finance, Innovation, and Technology (CFIT) in Leeds.
“Its central task is to bring together industry players, entrepreneurs, policymakers, investors, academics, to coalition’s to address some of the trickiest challenges facing the sector.I’m delighted to announce today that CFIT’s first coalition will look at open finance and how unlocking financial data can benefit small businesses, entrepreneurs and consumers.”
Griffith asserted that the logical progression after open banking is the emergence of open Finance, an area in which the UK is a global leader with 7 million users and over one billion API calls accomplished monthly. Thousands of new businesses and products developed.
Griffith’s subsequent declaration was to transfer open banking into a sustainable regulatory structure, facilitated by the Data Protection and Digital Identity Bill currently being deliberated in Parliament.
Griffith continues to say:
“Open banking will also transition to a new entity with a broad based equitable funding model and high standards of corporate governance and today we also set out how we plan to get this transition started this year.”
The FCA and the Payment Systems Regulator (PSR) co-chair the Joint Regulatory Oversight Committee (JROC).
Joint Regulatory Oversight Committee says:
“Opportunities for new products and services, allowing consumers and businesses to share data and make payments in more convenient and efficient ways”
Griffith continues to say:
“This morning, the committee [JROC] set out its recommendations with a vision of data sharing market, which is competitive and scalable for the long term.”
Griffith discussed the growth of AI in financial services, with a special focus on its use for improving customer service, preventing financial crime, and aiding decision-making. He then pointed out the Government’s recently published whitepaper on AI governance and how Britain addresses it.
Furthermore, Griffith declared that the Government had committed £900 million to construct a supercomputer and form a new national AI study resource.
Griffith announced the launch of a new UK Fintech Census, conducted with the City of London and Innovate Finance. It will take place over five weeks and solicit responses from all 2,500 fintech in the country. This census will be done on an annual basis.
The announcement is a positive development for the UK’s tech industry and the broader economy. It demonstrates a commitment to staying at the forefront of innovation and harnessing the potential of emerging technologies to improve people’s lives.
Source: Finextra Research