Innovate Finance, the leading advocacy group for the thriving Fintech industry in the UK, is gearing up to release its much-anticipated “Innovate Finance Fintech Manifesto.” With a focus on areas such as Open Banking, Open Finance, Smart Data & AI, the organization aims to bolster the adoption of digital financial services in order to maintain London’s status as a global financial hub.
One key aspect that Innovate Finance is emphasizing in its manifesto is the need for a more flexible approach to regulation in the Buy Now Pay Later space. The organization believes that a more accommodating regulatory environment would foster innovation and provide consumers with a better experience when using such services.
In the fight against economic crime, Innovate Finance is working closely with the Payment Systems Regulator to ensure effective reporting on fraud. The organization acknowledges the significance of combating financial crime and is keen to collaborate with regulators to develop robust measures.
Another area where Innovate Finance is throwing its weight behind is the regulation of digital assets, blockchain, and cryptocurrencies. The group supports HM Treasury’s approach to cryptoasset regulation but also stresses the importance of implementing rules that encourage innovation and proportionality.
Taking a proactive stance on sustainability, Innovate Finance is supporting Project Perseus, a national initiative that aims to automate greenhouse gas emissions reporting for UK SMEs using smart meter energy data. By endorsing this initiative, the organization is underlining the fintech industry’s commitment to achieving net-zero emissions.
Challenger banks play a vital role in the UK’s financial landscape, and Innovate Finance is actively participating in consultations related to regulations for these institutions. The organization is advocating for simpler and more streamlined regulatory frameworks to foster competition and innovation in the sector.
Recognizing the need for a conducive regulatory environment, Innovate Finance has called for several changes. This includes the introduction of a “Regtech test” for any new regulations to assess their impact on technology, a departure from the current one-size-fits-all approach to regulation, and the establishment of better resources and expertise within regulators to understand and support innovation.
In addition to its domestic engagements, Innovate Finance is strengthening ties with international counterparts and exploring opportunities for collaboration and investment. The organization has been actively reaching out to the US market, seeking to deepen engagement with American stakeholders and attract investment. Innovate Finance is also engaging with other jurisdictions like Singapore to further bolster the global fintech ecosystem.
To further highlight the significance of its initiatives, Innovate Finance recently announced new members who have joined the group. Notably, Apple, one of the largest fintech companies globally, has thrown its weight behind the organization. With the recent integration of Open Banking into its digital wallet in the UK, Apple aims to expand its fintech services and sees Innovate Finance as an important ally in achieving its goals.
Joining Apple are other US-based firms, potentially seeking to expand their operations or finding refuge from the increasingly complex regulatory landscape in the US. Their involvement further demonstrates the allure of the UK’s fintech sector and the support provided by Innovate Finance.
As Innovate Finance continues to champion the cause of the fintech industry, its efforts to shape regulation and promote innovation are gaining momentum both at home and on the global stage. With key focus areas, collaborative partnerships, and a growing list of influential members, the organization is well-positioned to drive the UK’s fintech industry forward.
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