Sheilah MackieA new Innovate Finance report, prepared with the Boston Consulting Group, looks at how the UK can secure its position as the world’s leading FinTech bug and help its top firms become globally competitive. Working with 20 FinTech founders and CEOs, including members of the Innovate Finance Unicorn Council for UK FinTech, the report urges government, industry and regulators to act together to mobilise long-term domestic capital, rebuild market access pathways and strengthen talent incentives.
The UK is currently second to the US in terms of the largest FinTech market, but capital invested in the sector has remained broadly flat over the past 2 years, while other markets have seen greatly increased investment. Specifically, the report notes that UK pension funds now allocate only around 4$ of their assets to UK equities, and that there is no appropriate framework to incentivise entrepreneurs, innovators and talent to choose the UK.