A new body focused on fintech growth in the UK launched today, along with plans for a new fintech growth fund.
The new Centre for Finance, Innovation and Technology (CFIT) said it is working on plans for the fund to be backed by pension fund money.
The body is supported by £5.5m of Treasury and City of London Corporation funding.
See also: Rishi Sunak review moots £1bn fintech growth fund
As well as the new fund, CFIT is also looking to coordinate the establishment of new financial innovation hubs in UK cities outside London – including Leeds, Manchester and Bristol – and placements at leading financial institutions for students at top universities.
The quango’s launch comes off the back of the Kalifa review published in 2021, which included recommendations for a £1bn fintech growth fund to plug the growth capital funding gap.
The report recommended reforms to regulation, investment, talent, international competitiveness, and connectivity – meaning the growth of the UK’s fintech hubs via the investment in R&D.
See also: UK seeing exodus of R&D activity
The aim of CFIT is to solidify the UK’s global standing in fintech. UK fintech firms attracted $12.5bn in funding in 2022 across 545 deals, making it second only to the US in terms of fintech investment and ahead of China and India. The UK has also become Europe’s breeding ground for tech unicorns.
Economic secretary Andrew Griffith said the plans will help the UK become a “technology and science superpower,” adding: “The UK is a world-leading location for fintech growth and investment – it’s a real British success story and one that’s spread across the whole UK.
“Today’s launch of the Centre for Finance, Innovation and Technology doubles down on this, boosting prosperity and investment in exciting cities for growth and innovation such as Leeds.”
Ezechi Britton, CEO of CFIT, told the Financial Times: “As a founder myself, I know that the UK is the best place to scale up for a fintech company. But we can’t rest on our laurels. Given the wealth of talent and innovative ideas in the sector, it is absolutely essential that we provide the right environment for our fintech sector to thrive and reach its full potential.”
More on fintech growth funding
