UK Prime Minister David Cameron has backed the UK FinTech 2020 manifesto created by FinTech trade body Innovate Finance.
The manifesto, which was released as Cameron leads a trade delegation of British FinTech leaders to South East Asia this week, aims to make the UK a world leader in financial technology and innovation by 2020 and has asked the government to continue its support for the sector.
Cameron has welcomed the five year plan, which outlines a number of ambitious goals in the manifesto, including plans to attract $8bn of investment, “Our vision for 2020 is for the UK to be the most investment-friendly environment for FinTech globally, attracting $4 billion of venture investment and $4 billion of institutional investment in corporate venture funds, accelerators and innovation programmes.”
For the UK to become the global home of 25 world leading FinTech companies based on IPO, valuation or global market share, which in order to be successful will need to be “supported by proportionate and effective regulation, a proactive policy environment and a commitment to greater financial inclusion.”
And to create 100,000 jobs by 2020, “by increasing investment in UK FinTech and developing an increasing number of global leading companies.”
Commenting on the manifesto goals, Cameron said: “This government wants the UK to be the leading FinTech centre in the world, that’s why, at the Summer Budget, we appointed a Special Envoy for this fast growing sector. I’m pleased that Innovate Finance’s manifesto has set such ambitious goals including the creation of 100,000 jobs. This will ensure we are a world leader in the development of financial services technologies.”
According to industry reports, the UK is only at the start of this dramatic transformation in financial services and the fintech sector already generates £20bn of GDP to the UK economy and directly employs 135,000 people.
According to research from Accenture, although the UK is leading the way in Europe for FinTech investment, taking 42% of all European FinTech investment in 2014. Investment grew 136% in 2014, from $264m in 2013 to $623m 2014, Silicon Valley still dominates, with FinTech investment at over $2bn versus a European total of $1.48bn.