According to industry leaders, the fintech sector will continue to play a significant role in the UK economy, despite the recent challenges faced. The recent Parliament Street fintech summit, hosted by several MPs and a panel of fintech experts challenged critics of the industry and summarised their vision for the future of the fintech industry.
On factors such as regulation, MP representatives explained that implementing regulations too soon may hinder innovation, but if we regulate too late or inappropriately, then there are potential loopholes, which is a significant challenge facing the fintech industry.
Jay Patel, Head of Product Management at reg tech organisation Encompass Corporation, explained that regulators have a critical role in our society, but ultimately we require banks to examine and interpret regulations and to ensure they are compliant for their customers. Meanwhile, Neh Thaker, the Co-Founder of the financial platform HedgeFlows, explains that 70% of SMEs could benefit from expanding internationally but believes only 10% will achieve it. Thaker believes that SMEs aren’t getting the support and resources they need to effectively eliminate the barriers associated with international trade.
At the summit, fintech entrepreneur Fraser Stewart of Lyfeguard highlighted the issues of the skills challenges facing the industry. Stewart explained that we require access to education, reskilling and delivering clear pathways toward fintech. Stewart also emphasises that more is required around diversity, with only 2% of fintech owners being female.
Khalid Talukder, the co-founder of DKK Partners, believes the fintech industry is looking for efficiencies, automation and reducing human involvement. Talukder explains that new tools and features won’t necessarily know people’s behaviours and what can be commercialised and lack that personal touch.
Samni Akinmusire, the co-founder of ImaliPay, explains that fintech entrepreneurs are typically creative in solving genuine issues. Innovation must follow regulations, but it can be challenging, and regulators must monitor changes, especially when innovation falls outside of regulations.
The UK fintech industry remains the largest in Europe, second only to the US worldwide. As the Government intends to determine a balance between innovation and the maintenance of a secure financial system, the UK financial services regulatory system has gained worldwide respect, solidifying itself as an attractive option for new businesses, innovators and investors.
