Fintech accelerator set to boost UK start-ups

Daniel’s comments followed a speech by Mark Carney, Governor of the Bank of England, in which Mr Carney revealed the launch of a new fintech accelerator for start-ups.

"The UK fintech ecosystem, as a whole, is much more advanced and, obviously, there’s more expertise in investment banking and payments available,” Daniel explained.

“The UK is also home to a number of challenger banks, which, so far, don’t really exist in Switzerland.

“I would welcome it if the Swiss central bank took more of a lead on emerging technology and blockchain in particular.”

In a speech at the Lord Mayor’s Banquet on 17^th June, Mr Carney revealed that the BoE would work with start-ups to harness fintech innovations for central banking.

“[Fintech] will change the nature of money, shake the foundations of central banking and deliver nothing less than a democratic revolution for all who use financial services,” Mr Carney stated.

In return for providing banking solutions, the BoE will offer firms a ‘first client’ reference and access to a growing network of fintech firms.

The BoE will also develop an official regulatory approach towards fintech, ensuring the safety of other banks, insurance policy holders and the wider financial ecosystem.

Mark added: “Fintech should neither be the Wild West nor strangled at birth.

“The Bank is devoting considerable resources to ensure whatever develops is sustainable, not ephemeral.”

Alex Zivoder, CEO of children’s debit card developer goHenry, concurred with Daniel, arguing that the UK sector was perfect for fintech growth.

“The UK benefits from the density of talent, free flow of capital, a culture that is increasingly supportive of entrepreneurs, and a regulatory regime that fosters innovation,” he explained.

Alex also believed the BoE’s changes would benefit the entire financial sector.

“Having a strong fintech start-up ecosystem is crucial to driving entrepreneurship and innovation in the UK.

“Supporting UK fintech benefits all of us; more companies will be formed here, more jobs created and ultimately better products and services for customers.”

Susanne Chishti, CEO of FINTECH Circle, also welcomed Mr Carney’s announcement.

She stated: “The BoE is the first central bank globally [to launch] a fintech accelerator, a very significant move to further deepen London's leadership position as a global fintech hub.

“Fintech entrepreneurs and investors believed in that vision for a while and to have the BoE governor share this vision so publicly is a powerful sign of confidence for this important industry to become mainstream.”

However, some British companies say more needs to be done before fintech can be considered mainstream.

Steve Larkin, Director of Development Finance at LendInvest, said: “While the adoption of technology is improving all sorts of aspects of our everyday life, certain areas of the financial system – the mortgage market in particular – remain in the technological dark ages.

“It’s encouraging to see the Bank of England launch this fintech accelerator… As an industry, we need to engage with these sorts of initiatives to ensure they deliver some sort of tangible result.”

Meanwhile, Daniel suggested that a solution for all may lie in wider scale reform.

"A well-coordinated and progressive regulatory framework for the EU could provide a substantial boost to European fintech."