The Kalifa Review of UK Fintech was published this morning, setting out a plan for the UK to retain its global leadership in fintech by helping the country’s financial technology firms to scale up, access the talent and finance they need, and deliver better financial services.
The Review considers the UK fintech sector’s current position and the “size of the prize” in terms of job creation, trade and investment, financial inclusion and economic recovery that the industry could deliver with the right strategic support.
The core of the Review is a five-point plan of recommendations based upon the key issues of policy and regulation, skills, investment, international opportunities and national connectivity.
Augmentum Fintech CEO Tim Levene said:
“Augmentum has been a pioneer in opening up the fintech asset class to public market investors, allowing institutional investors alongside retail investors to get diversified exposure to this emerging sector.
“We agree there is a need to encourage UK institutions, in particular pensions funds, to invest in fintech, one of the UK’s best performing asset classes, and we welcome the report’s recommendations in this important area. Augmentum remains one of the few ways that public market investors can access fintech and we know from conversations with our current and prospective investors that there is considerable appetite amongst UK institutions to access opportunities in this fast growing and innovative space. We believe there is significant opportunity and demand for a greater pool of capital flowing into fintech which in turn can only strengthen the UK tech ecosystem.
“Despite Brexit and initiatives by European capitals to provide generous state funding mechanisms to dilute dependence on London and to grow their own tech ecosystems, we still see some of the best European Fintechs and their founders coming to the UK to innovate and to grow their businesses. Over half of Augmentum’s UK based portfolio companies have non-UK founders/CEOs, and we believe this trend will continue, especially if the right policy framework is introduced to ensure talent can still access the UK.”
Read the Review here