Key Takeaways
- National Fintech hub, CFIT, officially launched at Nexus, University of Leeds
- Initiative aims to strengthen UK’s financial innovation sector
- UK is currently the second largest fintech investment market globally
- CFIT received £5 million in seed funding from the government and £500k from the City of London Corporation
- Strategic collaborations with experts from various sectors will drive the hub’s objectives
Background: UK Fintech Industry under Threat
The UK’s fintech industry is facing increasing pressure as companies depart for the US stock market due to access to larger pools of investors and higher valuations. This trend threatens the UK’s position as a major center for finance, equities, investments, technology, and innovation. In response, the UK government has established the Centre for Finance, Innovation, and Technology (CFIT) following recommendations from the Kalifa Review of UK Fintech.
Meeting Expectations: CFIT’s Role in the UK Fintech Sector
The CFIT is expected to lead the UK’s financial technology and investment industry into a new age of growth and innovation, helping businesses reach global scales. With £5 million in seed funding from the government and an additional £500k from the City of London Corporation, CFIT aims to maintain the UK’s dominance in the global fintech sector by fostering innovation and creating opportunities for firms and citizens.
Economic Secretary to the Treasury, Andrew Griffith, highlighted the importance of the CFIT for the UK fintech industry, stating that its establishment will “increase investment and prosperity in Leeds and other attractive locations for development and innovation.”
Collaborations and Partnerships: The Driving Force of CFIT
To achieve its objectives, CFIT will engage in strategic collaborations with a coalition of experts from various sectors, including technology, finance, policy-making, and academia. These experts will work together to identify and remove potential barriers to establishing and scaling businesses across the UK through research and data-driven methods. Real-world outcomes and visible industry benefits will be used to measure the success of these collaborations and their implementation.
During the launch, Prof Iain Clacher, Co-Lead of Commercialisation and Supporting the Ecosystem at CGFI, and Head of the Centre for Financial Technology and Innovation at the University of Leeds, announced a partnership between CFIT and the University of Leeds to facilitate internships and placements in UK Fintech businesses.
