What Does This New Government Mean for UK Fintech?
- Scott Dawson, Head of Sales and Strategic Partnerships at DECTA
- 05.07.2024 10:15 am #UKFintech #GovernmentPolicy
“It was a divisive election but what matters now is that the new government prioritise common sense policies, including those in favour of the fintech community and its significant potential to better serve UK businesses. This especially goes for small to medium sized enterprises (SMEs), which collectively supports 27 million jobs. That is 61% of UK employment and accounts for a staggering £4.5 trillion in annual turnover.”
“Political clarity will be key to achieving this. Labour have been selling themselves as ‘not Tories’ and the Tories have been selling themselves as ‘not Labour’, and so on and so on. These parties have been defining themselves on what they’re not – it’s going to be interesting to see what they actually are and what solutions they will bring to strengthen the economy.”
“Despite 14 years of discussions about fostering innovation, regional development, and tech investment, London's status as a supposed global fintech hub ever translated into meaningful government action – hopefully we’ll see a change to this now. Primarily, the government should look to actively promote private sector investment as and when it materialises.”
“It would also be positive to see this government learn from some of the most impactful changes that were implemented prior to the UK leaving the EU. The Payment Services Directive (PSD) regulations, for instance, spurred innovation by introducing Open Banking and 3DS services. Embracing, not fearing, regulation could be a game-changer. Less aversion to strong government support would be positive could unlock significant profit potential and fuel further innovation for UK businesses – helping them to prosper through better access to finance and financial services.”
