Innovate Finance Initial Response to the Autumn Statement
Lawrence Wintermeyer, CEO, Innovate Finance
Innovate Finance welcomes today’s Autumn Statement, the first from the Chancellor of the Exchequer Phillip Hammond MP. We are pleased to see a focus on investment, productivity and digital innovation.
However, the Statement is light on measures that will address future visa settlement. The continued success of our FinTech sector depends on the ability for the UK to attract global talent and to develop local skills.
As expected, there is also no update on the future of passporting or single market issues. We will continue to push for the best possible solutions across a range of FinTech markets.
British Business Bank gets an extra £400m as per Innovate Finance Autumn Statement Submission
Innovate Finance welcomes the government’s commitment to supporting the UK’s fastest growing tech firms by injecting an additional £400 million into venture capital funds through the British Business Bank, unlocking £1 billion of new finance for growing firms.
Innovate Finance called for the UK government to expand the role of the British Business Bank in our Autumn Statement submission, including playing a more prominent role in venture-backed investment. This announcement will be welcomed by the UK’s fast growing FinTech sector.
JMLSG to review electronic ID Verification
Innovate Finance is delighted that the Joint Money Laundering Steering Group will modernise their guidance on electronic ID verification to support the use of technology to access financial services. In our submission we called for the JMLSG to explore tech solutions and for a broader acceptance of digital identification methods to address out-dated AML rules which holds back FinTech solutions.
Innovate Finance to help deliver the Annual ‘State of UK FinTech’ Report
We look forward to working with EY to lead HMT’s annual ‘State of UK FinTech’ Report, which will seek to highlight key metrics on the sector.
An accurate measurement of this evolving space will help policymakers, investors and other market participants assess activity, growth and trends for one of the UK’s most dynamic sectors.
The United Kingdom is already a global FinTech leader, attracting more venture capital investment than any other European location.
However, in order to continue to support the growth of this sector, an annual stock-take of how the industry is performing, from an analysis of investment through to employment will provide a welcome data-set from which to coordinate evidence-based action.
Our work with HMT and EY will help to further cement the UK’s FinTech expertise and to help drive a more competitive, transparent and inclusive financial services sector.
DIT to give £500,000 a year for FinTech Specialists
We are also supportive of DIT’s ambition to provide £500,000 a year for FinTech specialists in a number of key global markets. Innovate Finance will continue to support our members scaling around the globe and this announcement helps to provide useful contacts on the ground.
An extra investment of £2 billion per year for R&D
Innovate Finance also welcomes the promise to invest an extra £2 billion per year into research and development as well as the launch of a Patient Capital Review. Innovate finance called for the UK government to undertake an assessment of access to finance at all stages of the growth cycle and this is a welcome first step.
Government to prioritise investment in Digital Infrastructure
Innovate finance also welcomes £1 billion boost to UK’s digital infrastructure including Broadband investment and a £740m fund to trial superfast 5G mobile networks, linking them to fibre-optic systems to provide greater wireless capacity.
Digital infrastructure is critical to any future industrial strategy and the adoption of FinTech solutions. From Open Banking APIs to pensions dashboards, connectivity is key to financial inclusion.